Greeson v. USAA Life Insurance Co.

Citations: 209 So. 3d 1066; 2016 La. App. LEXIS 2377Docket: NO. 2016 CA 0667

Court: Louisiana Court of Appeal; December 21, 2016; Louisiana; State Appellate Court

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USAA Life Insurance Company (USAA) appeals a contempt order issued by the Nineteenth Judicial District Court in favor of Cheryl S. Greeson. The case involves a life insurance policy held by Dr. David Charles Greeson, who designated his wife, Jennifer S. Gilkes, as the beneficiary. Following Dr. Greeson's divorce filing on January 17, 2014, he requested to change the beneficiary to his mother, Cheryl S. Greeson, which USAA confirmed on April 11, 2014. Dr. Greeson died on December 22, 2014, and Mrs. Greeson filed a claim for the policy proceeds on January 12, 2015. USAA subsequently received a competing claim from Ms. Gilkes and initiated a concursus action to resolve the conflicting claims.

During the proceedings, USAA sought a protective order regarding the deposition process, arguing that beneficiary changes made by telephone were accepted, and that the deposition would cause undue burden. The trial court denied USAA’s motions, and USAA notified Mrs. Greeson that it would not attend the scheduled deposition without the protective order. On November 13, 2015, USAA failed to appear for the deposition, leading to the contempt motion against them, which the court ultimately upheld, affirming the lower court's order for contempt, sanctions, and costs against USAA.

After discussions concluded, the meeting adjourned without the deposition occurring. That same day, Mrs. Greeson filed a motion for contempt, sanctions, and costs against USAA, seeking expedited consideration due to USAA’s failure to appear. On November 16, 2015, USAA sought a stay of discovery proceedings while applying for supervisory writs. The trial court denied USAA’s motions regarding protective orders and to quash the deposition on November 17, 2015. USAA then filed a notice of intent to seek supervisory writs against this judgment. On February 26, 2016, the trial court granted Mrs. Greeson's contempt motion, imposing sanctions and ordering USAA to cover costs related to the deposition, while also denying USAA’s motion to stay. This denial of supervisory writ was upheld by the appellate court on March 21, 2016. USAA is now appealing the February 26 order, raising two errors: (1) the trial court allegedly abused its discretion by granting contempt, arguing that it did not disobey a court order since USAA was not compelled to appear for the deposition, and (2) USAA contends it did not attend the deposition based on a good faith belief that doing so would jeopardize its interests in protecting confidential information. The standard of review for contempt is based on the trial court’s discretion, with factual determinations reviewed under the manifest error standard. The case involves constructive contempt, which requires proof of intentional disobedience of a lawful court order, as established under Louisiana law. Evidence from a prior hearing indicates the court issued a clear mandate regarding USAA’s deposition obligations.

USAA requested a postponement of a deposition scheduled for November 13 due to a conflict with a jury trial, suggesting that the court should first rule on a pending motion for summary judgment regarding beneficiary changes in a divorce proceeding, which could render the deposition moot. However, the court determined the deposition would proceed as planned, clarifying that its scope would follow the notice of deposition, which included topics on USAA’s policies and electronic signatures. USAA's failure to appear at the deposition led the court to find it in contempt, as it had not complied with the court's order. USAA's arguments for acting in good faith were dismissed, particularly since its motion to stay and writ application were filed after the scheduled deposition. Thus, the trial court's contempt ruling and sanctions against USAA were upheld, with all appeal costs assigned to USAA. The summary also references Louisiana Code of Civil Procedure art. 1442, which outlines the procedure for depositions of organizations. The court's affirmation of the contempt ruling is noted in the case of Cheryl S. Greeson v. USAA Life Insurance Company, 2015 CW 1963.