Aghighi v. Louisiana Citizens Property Insurance Corp.
119 So. 3d 930
La. Ct. App.2013Background
- Aghighi renovated a storm-damaged two-story home in New Orleans after Hurricane Katrina, completed March 2008.
- Hurricane Gustav in September 2008 caused interior and exterior damage, including a fallen tree, prompting insured claim with LCPIC.
- Aghighi sued LCPIC for unpaid damages and bad faith claims handling after about nine months of inadequate adjustments.
- Trial court awarded $49,388.65 in damages plus costs and interest, but denied penalties and attorney fees under La. R.S. 22:1892.
- Court reviewed the trial record under manifest error/clearly wrong standard; found damages supported by evidence but awarded penalties/fees were in dispute.
- On appeal, the court affirmed in part the damages award and reversed in part, awarding penalties ($31,410.43) and $15,000 in attorney fees, rendering judgment against LCPIC.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Damages: did the trial court err in the damaged amount awarded? | Aghighi contends total damages were $98,777.29, not $49,388.65. | LCPIC argues the trial court properly limited damages after finding some estimates inflated and not all flooring replacement proven. | Damages affirmed; trial court not manifestly erroneous. |
| Penalties and attorney fees: should penalties and fees be awarded under La. R.S. 22:1892? | Aghighi asserts LCPIC acted arbitrarily, capriciously, or without probable cause in delaying payment. | LCPIC contends there was no arbitrary or capricious conduct; re-inspection and payment were timely. | Penalties and attorney fees awarded; insurer liable for 50% of total damages ($31,410.43) and $15,000 in fees. |
Key Cases Cited
- Perez v. Allstate Ins. Co., 625 So.2d 1067 (La.App. 4 Cir. 1993) (insurer arbitrary in failing to timely pay uninsured motorist claim)
- Durio v. Horace Mann Ins. Co., 74 So.3d 1159 (La. 4 Cir. 2011) (penalties when insurer arbitrarily fails to pay within statutory delay)
- Maloney Cinque, L.L.C. v. Pacific Ins. Co., Ltd., 89 So.3d 12 (La.App. 4 Cir. 2012) (undisputed portion triggers penalties on entire claim)
- Jouve v. State Farm Fire and Cas. Co., 74 So.3d 220 (La.App. 4 Cir. 2011) (insurer’s re-inspection rationale in penalties context)
- Arceneaux v. Amstar Corp., 969 So.2d 755 (La.App. 4 Cir. 2007) (trial court factual findings reviewed for manifest error)
- Sher v. Lafayette Ins. Co., 988 So.2d 186 (La. 2008) (definition of arbitrary, capricious, or without probable cause)
- Reed v. State Farm Mut. Auto. Ins. Co., 857 So.2d 1012 (La. 2003) (terminology for vexatious refusal to pay)
- Detraz v. Lee, 950 So.2d 557 (La. 1/17/2007) (manifest error standard for factual findings)