187 So. 3d 581
La. Ct. App.2016Background
- Johno, assignee of Duplessis, sues Scottsdale for bad-faith failure-to-settle under La. R.S. 22:1973.
- Release between Johno and Duplessis purportedly assigns some contractual rights to Johno but not explicitly the bad-faith claim.
- Trial court sustained Scottsdale's partial exception of no right of action and dismissed the bad-faith claim.
- Court reviews the Release de novo and finds it unambiguous and not supplying an assignment of the bad-faith claim.
- Bad-faith claim arises from statutory duties under La. R.S. 22:1973, not from the insurance contract, and the Release’s defined terms govern only contractual rights, not the statutory bad-faith claim.
- Ruling affirmed; Johno cannot proceed on Duplessis’ bad-faith claim against Scottsdale under the Release
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Release assigns Duplessis’ bad-faith claim to Johno | Johno: broad "assignment of rights" includes bad-faith claim | Scottsdale: release is unambiguous and does not assign the bad-faith claim | No; Release unambiguously does not assign the bad-faith claim |
Key Cases Cited
- J-W Power Co. v. State ex rel. Dept. of Revenue, 59 So.3d 1234 (La. 2011) (assumes valid cause of action; articulates de novo review standards)
- Kelly v. State Farm Fire & Cas. Co., 169 So.3d 328 (La. 2015) (assignment and rights theories; assignability under statutory claim context)
- Wegener v. Lafayette Ins. Co., 60 So.3d 1220 (La. 2011) (insurer duties under La. R.S. 22:1973 are separate from contract)
- Durio v. Horace Mann Ins. Co., 74 So.3d 1159 (La. 2011) (insurer duties under statute; interplay with contract)
- Sims v. Mulhearn Funeral Home, Inc., 956 So.2d 583 (La. 2007) (contractual interpretation; plain meaning rule)
- Babineaux v. Pemie-Bailey Drilling Co., 262 So.2d 328 (La. 1972) (no right of action vs. no cause of action doctrine)