BATON ROUGE — The Louisiana Court of Appeals First Circuit has affirmed a district court’s decision to retroactively apply a recent legislative amendment that eliminates class actions against the Louisiana Citizens Property Insurance Corporation (LCPIC).
The case, which centered on the aftermath of Hurricane Ida, involved property owner Troy Parria’s efforts to bring a class action against LCPIC for alleged bad faith in delaying insurance payouts, according to the Nov. 13 opinion.
The case was before Judges Elizabeth P. "Beth" Wolfe, Steven Miller and Hunter Greene. Wolfe authored the majority opinion. Miller dissented and authored a dissenting opinion.
The controversy stems from Act 290, a 2023 legislative amendment effective Aug. 1, 2023, which revised Louisiana’s insurance code by barring class action lawsuits against LCPIC.
The district court ruled that this change, being procedural in nature, should apply retroactively, effectively dismantling Parria’s class action.
Parria appealed, arguing that his right to pursue a class action had vested when he initiated the lawsuit in December 2021, thus Act 290 should not apply to his case.
The appellate court’s opinion underscored the procedural-versus-substantive nature of the legislative change.
Procedural changes can generally be applied retroactively, provided they do not strip individuals of substantive rights, the opinion states.
The court concluded that class actions are merely a procedural mechanism and do not grant substantive rights.
Therefore, the retroactive application of Act 290 did not infringe upon Parria’s rights, as he retains the ability to pursue an individual claim against LCPIC.
Parria reported damage to his Houma, La., property in September 2021 from Hurricane Ida, which struck Lousiana in late August 2021 and LCPIC initially paid $46,911.22 in November of that year.
Dissatisfied with the timeliness and amount of LCPIC’s payout, Parria sought class certification in July 2023, representing other policyholders he claimed were similarly affected.
LCPIC countered with a series of legal maneuvers aimed at dismissing the class action component of his lawsuit.
In November 2023, the district court ruled in favor of LCPIC, declaring Parria’s class action allegations inadmissible and striking them from the proceedings.
While his individual claim remains intact, Parria’s appeal challenged the retroactive application of Act 290, arguing it was a substantive change intended to apply only prospectively.
The appellate court rejected Parria’s arguments, finding that Act 290 was clearly procedural and therefore applicable retroactively.
The court emphasized that Parria and similarly situated individuals are not deprived of their substantive rights; they can still pursue individual claims against LCPIC.
In its ruling, the court cited longstanding Louisiana legal principles distinguishing procedural rules, which govern the manner of enforcing rights, from substantive rights themselves.
Miller dissents from the majority’s decision to retroactively apply Act 290, which prevents Louisiana property owners from filing class actions related to Hurricane Ida insurance claims.
The amendment, enacted two years after the storm, bars insureds from pursuing claims against the LCPIC.
Miller argues this retroactive application would hinder claims that are otherwise impracticable to file individually, violating established rights.
Although amendments to procedural laws can be retroactive, Miller contends it cannot divest vested rights without impairing contractual obligations, rendering the trial court's dismissal of class allegations inappropriate and unjust.
Parria is represented by David W. Ardoin, Preston L. Hayes, Matthew D. Ory and Ryan P. Monsour of Thibodaux.
The LCPIC is represented by Sidney W. Degan III, Keith A. Kornman, Genevieve K. Jacques, Travis L. Bourgeois and Candace C. Chauvin of New Orleans.
Attorneys for the parties declined to comment on the matter.
Louisiana Court of Appeal First Circuit case number: 2024 CA 0263, 2023 CW 1310