Bourgeois v. Allstate Insurance Co.

Citations: 820 So. 2d 1132; 18 I.E.R. Cas. (BNA) 1391; 2002 La.App. 5 Cir. 105; 2002 La. App. LEXIS 1725; 2002 WL 1065847Docket: No. 02-CA-105

Court: Louisiana Court of Appeal; May 29, 2002; Louisiana; State Appellate Court

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The case revolves around allegations of negligence against Angel Nails and its owner, related to the theft of a customer's diamond ring. Plaintiff Sally Bourgeois, a regular patron, reported that her ring was stolen during a visit on December 15, 1998. She was asked by employee Myelin Phan to remove her engagement ring for a soaking process, which Bourgeois found unusual but complied with, placing the ring in a zippered makeup pouch inside her purse. After washing her hands, she was escorted to another workstation and left the salon without checking her purse. Upon returning home, she discovered the ring was missing and subsequently filed a complaint with local law enforcement. 

An investigation was conducted, but the ring was never recovered, and Bourgeois filed a lawsuit against Angel Nails, its owner Tuy Nguyen, and insurer Allstate Insurance Company, alleging negligent hiring, training, and supervision of employees, along with inadequate security policies for customer belongings. Myelin Phan, the employee involved, could not be served and was therefore dismissed from the case. 

The trial court found in favor of Bourgeois, determining that the negligence of Angel Nails led to the loss of her ring. The court awarded her $8,500 for the ring's replacement and $4,000 for mental anguish, along with court costs and interest. Allstate appealed the decision. The judgment was later amended, affirming the trial court's findings.

The trial court faced three assignments of error related to a negligence claim against Tuy Nguyen d/b/a Angel Nails. First, it was argued that the court erred in finding negligence, asserting the plaintiff failed to demonstrate a breach of duty. Second, the admission of evidence regarding the appraisal of a lost ring was contested. Third, the awarded damages of $8,500 for the ring's replacement value and $4,000 for mental anguish were challenged. 

Allstate contended that the plaintiff did not prove Angel Nails owed or breached a duty to Mrs. Bourgeois, but the court disagreed. Louisiana law holds employers liable for damages caused by employees in their professional capacity. Factors determining employer liability include whether the tortious act was employment-related, occurred on the premises, and happened during work hours. Importantly, an employee's self-serving motives do not negate employer liability if the act served the employer's business interests.

Angel Nails had a duty to protect Mrs. Bourgeois from its employee’s tortious acts during her visit. The court found no manifest error in the trial judge's conclusion that Angel Nails was negligent in training and supervising employee Myelin Phan. Testimony revealed that Kim Tran, the manager, failed to provide adequate training or establish policies for handling customer valuables. Although there was no direct evidence linking Ms. Phan to the loss of Mrs. Bourgeois' ring, the timing of her departure from the business and her actions raised suspicions. Ultimately, the trial judge credited Mrs. Bourgeois' testimony regarding the events surrounding the incident.

Findings based on witness credibility require great deference to the fact finder’s determinations, as only they can assess the nuances of demeanor and tone that influence belief. The trial court was particularly impressed with Mrs. Bourgeois, a long-time high school teacher with no prior lawsuits, leading to its ruling that Angel Nails was liable for her damages. The court's decision is affirmed, with no manifest error found in its credibility assessment.

Regarding the introduction of the appraisal of Mrs. Bourgeois' ring without the appraiser's testimony, the court allowed it despite defense objections about hearsay. The appraisal, valued at $7,000, was deemed the best evidence available, given that it was conducted by a familiar jeweler shortly before the ring went missing. The appellate court found no clear abuse of discretion in admitting this evidence.

Defendants also challenged the trial court's award of $8,500 for the replacement of the ring and $4,000 for mental anguish. The appellate court noted that such awards can only be overturned if there is clear evidence of an abuse of discretion. Mrs. Bourgeois' ring had significant sentimental value, being a 0.76 carat diamond chosen with her husband before their marriage, and she testified that it was irreplaceable. The court awarded her the replacement cost based on her credible testimony. The $4,000 mental anguish award was assessed based on the plaintiff's unique circumstances, and the appellate court found no grounds to deem it excessive. Thus, the trial court's judgments are upheld.

Recovery of damages for property loss requires proof of psychic trauma akin to a physical injury directly resulting from the incident. In the case of State Farm Fire. Cas. Co. v. Torregano, the plaintiff, Mrs. Bourgeois, claimed damages for mental anguish due to the loss of her engagement ring, which held sentimental value. Although she testified about the emotional impact, the court found insufficient evidence of extreme mental anguish. Her inability to visit nail salons and cautioning her students were noted, but these did not establish real psychic trauma. Consequently, the court amended the trial court's award for mental anguish from $4,000 to $1,500 while affirming all other aspects of the judgment.