Retail Merchants Ass'n v. Forrester
114 So. 3d 1175
La. Ct. App.2013Background
- Open account action against Forrester for $4,363 based on medical services rendered January 27, 2008 to Forrester at Willis-Knighton; Credit Bureau of Louisiana filed suit on December 18, 2009 as Willis-Knighton’s agent seeking balance, interest, costs, and attorney fees; Forrester argued Willis-Knighton failed to timely file insurer claim and thus insurance coverage voided; Willis-Knighton did not prove it filed or timely filed an insurer claim and did not mitigate damages claim; contract signed January 27, 2008 required payment in full and assigned insurance benefits to Willis-Knighton, with a provision stating Willis-Knighton would file insurance claims and apply insurer payments to reduce the debt; trial court found no evidence of timely insurer action by Willis-Knighton and dismissed plaintiff’s claim; appellate court affirms.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was Willis-Knighton obligated to file and apply insurer payments under the contract? | Forrester signed a contract requiring payment in full and assignment of benefits; Willis-Knighton must file claims and apply insurer payments. | Forrester’s obligation to pay remains; insurer filing only a service and does not relieve Forrester of debt. | Yes, Willis-Knighton had a mandatory duty to file and apply insurer payments. |
| Did Willis-Knighton’s failure to file or timely file insurer claims bar collection of full balance? | Despite insurer filing issues, Forrester remains personally responsible for amount due as per contract. | Willis-Knighton’s failure to perform reciprocal obligation prevents default against Forrester. | Yes, failure to perform reciprocal obligation undermines plaintiff’s right to full collection. |
| Did the trial court correctly conclude the open account balance was not proven due to insurer filing issues? | The balance on the invoice is owed regardless of insurer filing history. | Without insurer filing timely, balance cannot be accurately proven. | The evidence failed to prove the balance due due to nonperformance of insurer-related obligations. |
Key Cases Cited
- Frey Plumbing Co., Inc. v. Foster, 996 So.2d 969 (La. 2d Cir. 2008) (open-account proof and burden of persuasion in open accounts)
- Cole Oil & Tire Co., Inc. v. Davis, 567 So.2d 122 (La.App. 2d Cir.1990) (preponderance standard; open-account record-keeping burden)
- Bloom’s Inc. v. Performance Fuels, L.L.C., 16 So.3d 476 (La.App. 2d Cir.2009) (contract interpretation and good faith; reciprocal obligations)
- Fireman’s Fund Ins. Co. v. Browning-Ferris Industries, 714 So.2d 168 (La.App. 2d Cir.1998) (appeals lie from judgments; not from reasons for judgment; guidance on proper appellate review)