GEORGE RAYMOND WILLIAMS, M.D., ORTHOPAEDIC SURGERY, A PROFESSIONAL MEDICAL L.L.C.
SIF CONSULTANTS OF LOUISIANA, INC., RISK MANAGEMENT SERVICES, L.L.C., MED-COMP USA, INC., ET AL.
FROM THE TWENTY-SEVENTH JUDICIAL DISTRICT COURT PARISH OF ST.
LANDRY, NO. 09-C-5244-C HONORABLE ALONZO HARRIS, DISTRICT
Paige Sensenbrenner, Martin A. Stern, Raymond P. Ward, Sara
C. Valentine, Adams and Reese, L.L.P. COUNSEL FOR
DEFENDANT/APPELLANT: Homeland Insurance Company of New York
Michael J. Rosen, Peter F. Lovato, III, Skarzynski Black, LLP
COUNSEL FOR DEFENDANT/APPELLANT: Homeland Insurance Company
of New York
Michael E. Parker, Randall K. Theunissen, D. Paul Gardner,
Jr., Allen & Gooch COUNSEL FOR DEFENDANT/APPELLANT:
Homeland Insurance Company of New York
A. Filo, Somer G. Brown, Cox, Cox, Filo, Camel & Wilson,
L.L.C. COUNSEL FOR PLAINTIFF/APPELLEE: George Raymond
Williams, M.D., Orthopaedic Surgery, A Professional Medical
S. Bradford, William B. Monk, Stockwell, Sievert, Viccellio,
Clements & Shaddock, L.L.P. COUNSEL FOR
PLAINTIFF/APPELLEE: George Raymond Williams, M.D.,
Orthopaedic Surgery, A Professional Medical L.L.C.
Patrick C. Morrow, Sr., James P. Ryan, Morrow, Morrow, Ryan,
Bassett & Haik COUNSEL FOR PLAINTIFF/APPELLEE: George
Raymond Williams, M.D., Orthopaedic Surgery, A Professional
Stephen B. Murray, Sr., Stephen B. Murray, Jr., Arthur M.
Murray, Murray Law Firm COUNSEL FOR PLAINTIFF/APPELLEE:
George Raymond Williams, M.D., Orthopaedic Surgery, A
Professional Medical L.L.C.
Charles T. Curtis, Jr. Gerard George Metzger Attorneys at Law
829 Baronne Street New Orleans, LA COUNSEL FOR
DEFENDANT/APPELLEE: Med-Comp USA, Inc.
Lane Roy Brown Sims, P.C., COUNSEL FOR DEFENDANT/APPELLEE:
Bertucci Unland Rabalais, Unland COUNSEL FOR
DEFENDANT/APPELLEE: Risk Management Services
P. Schiller Daniel J. Layden, Hangley, Aronchick, Segal,
Pudlin & Schiller COUNSEL FOR DEFENDANT/APPELLEE: Risk
William Usdin, Barrasso, Usdin, Kupperman, Freeman &
Sarver, COUNSEL FOR DEFENDANT/APPELLEE: Executive Risk
Specialty Ins. Co.
Cynthia J. Thomas, Galloway, Johnson, Thompkins, Burr &
Smith COUNSEL FOR DEFENDANT/APPELLEE: SIF Consultants of
Mark Fezio, Stone Pigman Walther Wittman, L.L.C. COUNSEL FOR
DEFENDANT/APPELLEE: CorVel Corp.
Patrick A. Juneau, Jr. The Juneau Firm
composed of Sylvia R. Cooks, Marc T. Amy, Shannon J.
Gremillion, Phyllis M. Keaty, and John E. Conery, Judges.
E. CONERY JUDGE
appeal addresses the appropriate date from which legal
interest will attach to a judgment. Homeland Insurance
Company of New York (Homeland) appeals the judgment of the
trial court awarding legal interest to the plaintiff class,
represented by George Raymond Williams, M.D., Orthopaedic
Surgery, A Professional Medical L.L.C., in an action against,
among other defendants, CorVel Corporation (CorVel), which
was insured by Homeland. The trial court's judgment
awarded legal interest from December 22, 2006, the date
plaintiff class demanded arbitration in federal court against
CorVel. Homeland claims legal interest is due from March 24,
2011, the date suit was filed in state court by the plaintiff
class naming CorVel as a defendant and its insurer, Homeland,
as a direct action defendant. For the reasons that follow, we
AND PROCEDURAL HISTORY
matter was initially filed on December 22, 2006 as a class
arbitration against CorVel. It is undisputed that CorVel was
insured under a 2006-2007 claims-made policy issued by
Homeland. It is also undisputed that the arbitration demand
originally included a prayer for legal interest. The
plaintiff class arbitration petition claimed that CorVel had
violated La.R.S. 40:2203.1 titled, "Prohibition of
certain practices by preferred provider organizations, "
by providing preferred provider organization (PPO) discounts
to their clients without providing the medical providers the
necessary notification under the statute. Therefore, the
plaintiff class claimed that the PPO's alternative rates
of payment were not enforceable against the medical
providers. The arbitration was never completed but remained
pending when the plaintiff class filed the state court
September 20, 2009, the plaintiff class filed a
"Petition for Damages and Class Certification"
naming additional PPOs as defendants. On March 24, 2011,
CorVel was named as a defendant, and its insurer, Homeland,
was added as a direct action defendant in the plaintiff
class's "First Amended and Re-Stated Petition for
Damages and Class Certification." Homeland filed an
exception of no right of action claiming that the suit by the
plaintiff class was an action in contract and therefore they
were not subject to suit under the direct action statute.
This court on appeal found that the petition filed by the
plaintiff class could provide the basis for a claim sounding
in both tort and contract, and therefore the plaintiff class
was allowed to proceed with its direct action claim against
Homeland. Williams v. SIF Consultants of La. Inc.,
12-419 (La.App. 3 Cir. 11/7/12), 103 So.3d 1172, writ
denied, 12-2637 (La. 3/15/13), 109 So.3d 381.
thereafter, the plaintiff class and CorVel entered into a
class-wide settlement due to the number of claims and
litigation in various forums. On April 27, 2011, the parties
filed a joint motion for preliminary approval of the
settlement. On November 4, 2011, the trial court approved the
settlement, which reserved the plaintiff class's demands
against the remaining defendants, including its direct action
claims against Homeland, CorVel's insurer.
plaintiff class filed a partial motion for summary judgment
against CorVel's insurers, which included Homeland. The
trial court found that the initial claim for class
arbitration filed on December 22, 2006 triggered coverage
under the 2006-2007 Homeland claims-made policy issued to its
insured CorVel. The trial court's ruling resulted in a
final judgment dated February 5, 2016, in favor of the
plaintiff class and an award of Homeland's full policy
limits of ten million dollars, "together with legal
interest thereon." Homeland filed a timely appeal. A
panel of this court affirmed the trial court's judgment
in favor of the plaintiff class, and the supreme court
subsequently denied writs. Williams v. SIF Consultants of
La., Inc., 16-343 (La.App. 3 Cir. 12/29/16), 209 So.3d
903, writ denied, 17-390 (La. 4/13/17), 218 So.3d
629. (Williams II)
the judgment became final, Homeland paid its policy limits of
ten million dollars and legal interest only from March 24,
2011, the date that Homeland was named as a direct action
defendant as CorVel's insurer. Homeland failed to pay
legal interest from December 22, 2006, the date of the
original demand against ...