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65 So. 3d 235
La. Ct. App.
2011
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Background

  • Cawley was in a December 7, 2007 auto accident in a Shell parking lot.
  • Payton struck her vehicle with Don Robert Services, Inc. as owner/permitter.
  • Cawley filed suit on February 18, 2009 naming Payton, Don Robert Services, Inc., and National Fire & Marine Insurance.
  • Defendants asserted prescription via a peremptory exception; trial court sustained and dismissed.
  • Plaintiff appealed challenging whether prescription was interrupted by settlements/payments.
  • Issue is whether National's payments and the June 2, 2008 release interrupted prescription on bodily injury claims.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Did tacit acknowledgment interrupt prescription? Cawley argues National's payments to her husband and Enterprise amounted to tacit acknowledgment. National contends payments were not unconditional settlements and cannot interrupt prescription. No interruption; payments did not unconditionally acknowledge liability.
Did the June 2, 2008 release constitute a settlement under La. R.S. 22:1290 interrupting prescription? Release of property damages should be treated as admission affecting her bodily injury claim. Release was a settlement of property damage; not an admission for other claims. Release was a settlement under 22:1290 and did not interrupt bodily injury prescription.
Was the Enterprise rental payment to National proven as an unconditional payment interrupting prescription? Recharge claims that rental payment to Enterprise, in her name, was unconditional. Record shows no proof that National paid Enterprise; no interruption. Not proven; no interruption based on Enterprise payment.

Key Cases Cited

  • Mallett v. McNeal, 939 So.2d 1254 (La. 2006) (tacit acknowledgment requires unconditional payments or equivalents)
  • Flowers v. U.S. Fid. & Guar. Co., 381 So.2d 378 (La. 1979) (tacit acknowledgment principles in prescription interruption)
  • Lima v. Schmidt, 595 So.2d 624 (La. 1992) (settlement concepts under prescription context)
  • Lawrence v. Our Lady of the Lake Hosp., 48 So.3d 1281 (La.App. 1st Cir. 2010) (burden shifting on prescription when no factual dispute; de novo review applied)
Read the full case

Case Details

Case Name: Cawley v. National Fire & Marine Insurance Co.
Court Name: Louisiana Court of Appeal
Date Published: May 6, 2011
Citations: 65 So. 3d 235; 2011 La. App. LEXIS 629; 2011 WL 1904016; 2010 La.App. 1 Cir. 2095; No. 2010 CA 2095
Docket Number: No. 2010 CA 2095
Court Abbreviation: La. Ct. App.
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    Cawley v. National Fire & Marine Insurance Co., 65 So. 3d 235