88 So. 3d 1082
La. Ct. App.2012Background
- Parish of Jefferson sues Bankers Insurance Company and Marcotte seeking an accounting and premium fees under La. R.S. 13:718 for underpayments dating 2001–2003.
- Statute 13:718 imposes fees on commercial surety underwriters who write criminal bail bonds and requires quarterly reporting and payment by the underwriter.
- Parish alleged Bankers as underwriter failed to collect and forward premiums from Marcotte to the Department of Insurance.
- Marcotte moved to strike, and the trial court sustained a no-cause-of-action exception, allowing amendment within 15 days.
- Parish amended to claim Marcotte exceeded agency scope, potentially making him an underwriter or personally liable.
- Trial court again sustained the no-cause-of-action exception and dismissed the Parish’s action with prejudice.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does 13:718 impose a duty on Marcotte as Bankers’ agent to report/pay fees? | Parish asserts Marcotte owes duties under 13:718. | Marcotte argues duty runs to Bankers, not Parish. | No independent duty on Marcotte; 13:718 imposes duties on the underwriter, not the agent. |
| Can Parish hold Marcotte personally liable for underpayment by overstepping authority? | Marcotte exceeded agency scope; could be liable personally. | No contract with Parish; no personal liability absent contract. | No personal liability; agent liable only to principal absent contract with Parish. |
| Does Parish plead negligent misrepresentation against Marcotte? | Marcotte provided info on premiums; Parish relied on it. | No duty or reliance pleaded establishing misrepresentation. | Parish failed to plead a duty, reliance, or causation for misrepresentation. |
Key Cases Cited
- Scheffler v. Adams and Reese, LLP, 950 So.2d 641 (La. 2007) (tests legal sufficiency on peremptory exception of no cause of action)
- Infinity Surety Agency, LLC, 63 So.3d 940 (La. 2011) (fact-pleading standard and exception review)
- Barrie v. V.P. Exterminators, Inc., 625 So.2d 1007 (La. 1993) (negligent misrepresentation and economic loss elements)
- Ponthier v. Manalla, 951 So.2d 1242 (La. App. 5th Cir. 2007) (duty requirement in negligent misrepresentation)