If you make a habit of checking our Cross-JurisdictionalClass Action Tolling scorecard on a daily basis, then you already knowthat the Louisiana Supreme Court recently skewered cross-jurisdictional tolling. They beat it with a red stick. But let’s assume for a moment that you have a life. Soblenderize a Hurricane, fry up some bacon-wrapped oysters, twirl a Who Datparasol, and enjoy the Cajun masterpiece that is Quinn v. Louisiana CitizensProperty Ins. Corp., 2012 La. NEXIS 2995 (La. Nov. 2, 2012).
For us, discussing Louisiana case law is like trying anew hot sauce – tasty and terrifying. Louisiana law is reallydifferent. Redhibition, anyone? It turns out that the peculiarityof Louisiana law is what makes it easy for the Louisiana Supreme Court to holdin the Quinn case that the Louisiana legislature did not intend to permitcross-jurisdictional class action tolling.
Quinn is not a drug or device case. It is not even aproduct liability case. Instead, the case involved insureds who brought astate court action against their homeowner’s insurer to recover for allegedunderpayment of compensation for wind and water damage resulting fromHurricanes Katrina and Rita. The case would have been barred by thestatute of limitations, unless the plaintiffs could benefit from tolling (inLouisiana talk, a “suspension of prescription”) by virtue of an earlier classaction that had been filed, and recently dismissed, in Louisiana federal court.
Before going through the Quinn analysis, let’s review thebidding on cross-jurisdictional class action tolling:
· Cross-jurisdiction tolling is a rule whereby acourt in one jurisdiction tolls the applicable statute of limitations based onthe filing of a class action in another jurisdiction.
· We hate it. The law should not reward thefiling of meritless class actions, and lawyers should not be able to gamestatutes of limitations in other jurisdictions.
· We hate it.
The plain words of the Louisiana tolling statute contain “noexpress language limiting its effect to class actions filed only in Louisianastate courts, ordinarily an indication that such a limitation was notintended.” Quinn, 2012 La. LEXIS 2995 at *19. Okay, we admit it –that scared us. But we held our voodoo doll tight and took another bite out ofa beignet. Surely this would turn out alright, right? Right. The Louisiana tolling statute refers to notice requirements that are“unique to Louisiana.” Id. at *21. Thus, “[b]y tying the operativeprovisions of La. C.C.P. art. 596 to unique aspects of Louisiana class actionprocedure, the legislature has expressed an intent that suspension ofprescription under La. C.C.P. art. 596 can apply only to putative class actionsfiled in Louisiana state courts.” Id. at * 23. The LouisianaSupreme Court was not merely standing on ceremony. Because the Louisianatolling statute triggered and stopped tolling periods based on uniquerequirements of Louisiana law, application of cross-jurisdictional tollingwould effectively permit indefinite tolling. Id. at *25. That result would be,of course, unfair, capricious, and insane – sort of like a Bourbon Streetbouncer at 2 a.m.
The plaintiffs argued that federal courts sitting indiversity should apply Louisiana state law on limitations and tolling. But that rule would be “absurd and patently unfair.” Id. at *23 n.12. It would also contravene something every first year law studentlearns – that the Erie doctrine requires federal courts sitting in diversity toapply state substantive law and federal procedural law. Id.
Finally, the Quinn court canvasses what other courts havesaid about cross-jurisdictional tolling. The courts that have acceptedcross-jurisdictional tolling did not involve anything like Louisiana’s uniquetolling provisions. Moreover, the Quinn court agreed with the rationaleof the anti-cross-jurisdictional tolling courts, especially the concern aboutforum-shopping, where opportunistic plaintiffs would file class actions instates with the most generous tolling rules. Id. at *31.
Add Louisiana to the win column for cross-jurisdictionaltolling. The opinion goes down smooth and easy, like asazerac.
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