Wegener v. Lafayette Insurance Co.
2011 La. LEXIS 601
| La. | 2011Background
- Wegeners’ home sustained wind and flood damage from Hurricane Katrina; policy limits: Lafayette dwelling $229,000, contents $114,500, etc.
- Lafayette assigned claim to Cunningham-Lindsey; initial wind-damage estimate was $24,979.90 with no ALF; later supplemental payments issued.
- Structural engineer Carruba found wind-related structural damage; HAAG later found flood caused nearly all first-story damage with no structural failure.
- Flood insurer State Farm paid dwelling and contents up to policy limits and ICC; Wegeners sued Lafayette for additional damages, penalties, and ALF recovery.
- Jury awarded additional wind-related damages and ALF but found no penalties or emotional distress; trial court granted partial JNOV awarding penalties.
- Appellate court affirmed JNOV for penalties, excluded flood evidence, and upheld verdict; Supreme Court vacated verdict and remanded for new trial due to erroneous instructions and interrogatories.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Mental anguish damages instruction | Wegener | Lafayette | Article 1220 damages allowed; erroneous instruction cured by remand |
| Interrogatories structure and penalties | Wegener | Lafayette | Interrogatories prevented consideration of penalties; remand for new trial |
| JNOV and damages/penalties | Wegener | Lafayette | JNOV and penalties review conflicting; remand for new trial warranted |
| Exclusion of flood evidence | Wegener | Lafayette | Flood payments admissible; double recovery considerations require weighing; remand allowed |
Key Cases Cited
- Sher v. Lafayette Insurance Co., 988 So.2d 186 (La. 2008) (discussed Article 1998 interaction with 22:1220 in mental anguish context)
- Veade v. Louisiana Citizens Property Corp., 985 So.2d 1275 (La. App. 4th Cir. 2008) (mental anguish under 22:1220 limited by intent-to-aggrieve notion)
- Orellana v. Louisiana Citizens Property Ins. Corp., 972 So.2d 1252 (La. App. 4th Cir. 2007) (dissent argued Article 1998 interacts with 22:1220 in bad-faith claims)
- Sultana Corporation v. Jewelers Mutual Ins. Co., 860 So.2d 1112 (La. 2003) (penalties under 22:1220 may be awarded without damages; intentionality not required)
- Midland Risk Ins. Co. v. State Farm Mut. Auto. Ins. Co., 643 So.2d 242 (La. App. 3 Cir. 1994) (principle that penalties can be imposed for certain acts without showing damages)
- Dickerson v. Lexington Ins. Co., 556 F.3d 290 (5th Cir. 2009) (federal court held 1998 does not bar 22:1220 mental anguish damages)
- Manuel v. Louisiana Sheriff's Risk Management, 664 So.2d 81 (La. 1995) (recognizes separate duties under 22:1220 vs contract)