Bourgeois v. Great American Insurance

222 So. 2d 70, 1969 La. App. LEXIS 6099
CourtLouisiana Court of Appeal
DecidedApril 7, 1969
DocketNo. 3385
StatusPublished
Cited by3 cases

This text of 222 So. 2d 70 (Bourgeois v. Great American Insurance) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bourgeois v. Great American Insurance, 222 So. 2d 70, 1969 La. App. LEXIS 6099 (La. Ct. App. 1969).

Opinions

BARNETTE, Judge.

The plaintiff, William Bourgeois, was awarded judgment in the amount of $8,085 [71]*71for personal injuries and certain items of special damage against the defendants Great American Insurance Company and Clyde P. Maise, Jr., jointly and in solido, as a result of an automobile accident. The automobile which collided with plaintiff’s automobile causing the injuries was driven by the defendant Maise; it was owned by the defendant Frank Gorney and was insured by Great American Insurance Company. .

Great American brought a third party action for full indemnity against Maise and Gorney based on certain allegations of noncooperation of its insured, Gorney, and the nonpermissive use of the automobile by Maise. Gorney, by reconvention in the third party action, sought recovery of attorney’s fees as a consequence of Great American’s refusal to defend him in the principal action. Great American’s third party petition was dismissed and judgment was rendered in favor of Gorney in the sum of $1,080 on his reconventional demand for attorney’s fee.

Great American appealed and the appeal was answered in this court by plaintiff Bourgeois, seeking an increase of damages and the allowance of an expert medical witness fee which was disallowed by the trial court. Gorney has answered the appeal seeking an increase in the judgment for attorney’s fee.

There was an intervention by Resolute Insurance Company for recovery of $698.-80 representing the amount of damages paid by it as collision insurer of Bourgeois. By stipulation of the parties this amount is admitted and it was agreed that the inter-venor, Resolute, would be entitled to judgment for that sum in the event of Bourgeois’ recovery on the principal action.

An exception of no right of action was filed by Great American against the plaintiff’s petition and an exception of no cause of action was filed by Gorney against the third party petition. These exceptions were properly referred to the merits of the case. It is not necessary to discuss them separately since they have no merit in the absence of a factual finding favorable to Great American.

The facts giving rise to plaintiff’s suit may be stated briefly. Mr. Bourgeois was driving across the Greater New Orleans Mississippi River Bridge toward the City of Gretna on the afternoon of August 27, 1965, when his automobile was suddenly and without warning struck from the rear by an automobile owned by the defendant Frank Gorney, doing business as Acme Home Builders, and driven by the defendant Clyde P. Maise, Jr. The force of the impact was very severe causing extensive damage to both automobiles and physical injuries to Mr. Bourgeois.

There is no real issue of liability and no serious effort was made to exculpate Maise from gross negligence. The defendant Maise filed no answer and offered no defense.

The defendant Great American admits the issuance of a public liability insurance policy to Gorney covering the Buick automobile driven by Maise. It has pleaded an affirmative defense of noncoverage on the allegation that Maise was a nonpermissive user of the automobile at the time of the accident in question. Its position in this respect is based upon the fact that the automobile driven by Maise had been placed by Gorney in possession of Colonial Buick Company for repairs and that Colonial had refused to deliver it to Gorney without his payment in cash for the repairs made. Gorney having not paid, the car was placed on Colonial’s lot and the keys put in a safe place. Thereafter the automobile was removed from its lot without the knowledge or permission of Colonial and while the owner Gorney allegedly was sick in the hospital. The inference is very pointed, though the fact was not proven, that the automobile was stealthily removed by Maise, in whose possession it was at the time of the accident. To bolster the inference against Maise, Great American offered testimony tending to prove that on [72]*72another occasion under strikingly similar circumstances a Cadillac automobile owned by Maise disappeared from the roof of Pontchartrain Motors, without payment of the repair bill, and later was found in Maise’s possession.

Furthermore, after Great American notified Gorney that he should obtain private counsel for his defense of the suit, Gorney obtained his own counsel, who filed a motion for continuance on behalf of Gorney on October 16, 1967, in which it was alleged :

“Mr. Gorney did not retain counsel until the afternoon of Friday, October 13, 1967, and counsel has been unable because of lack of sufficient time to prepare an adequate defense in this action. However, as of Friday afternoon October 13, 1967 it has become apparent that the 1965 Buick automobile involved in this matter may have been stolen from the parking lot of Colonial Buick, where it had been for repairs.”

The insured, Gorney, made no report of the accident to his insurer, Great American, who learned of the accident for the first time upon receipt of a demand letter from plaintiffs attorney, dated November 17, 1965. At about the same time it received a letter from Resolute Insurance Company relative to the property damage claim paid on behalf of Resolute’s insured, Bourgeois. At this point Great American began its efforts to contact Gorney to obtain a report of the accident and such other information necessary to process the claim made on behalf of Bourgeois.

Without burdening this opinion with the details, it suffices to say that the claims adjuster made reasonable and diligent efforts to contact Gorney by letters, some registered, addressed to his last known business and residence addresses. Some of the letters were returned undelivered, but Gorney did receive at least one letter dated February 24, 1966. In late December, 1965, Gorney was reached by telephone and made an excuse that he was going out of town and would contact the adjuster later. It was not until March 2, 1966 (less than two weeks before suit was filed), that Great American made personal contact with Gorney, at which time Gorney signed a réservation of rights letter and authorized an investigation. At that time he gave a statement indicating that Maise might have had permission to use the automobile at the time in question as a prospective buyer.

Gorney had more than two years from date of the accident and some 21 months from the telephone conversation with the insurance adjuster to determine if Maise had permission to use his automobile on August 27, 1965, and to inquire how and by whose authority the automobile was removed from the repair garage lot. It is significant, therefore, that as late as three days before the date first set for trial he alleged the automobile “ * * * may have been stolen from the parking lot of Colonial Buick * *

Great American had filed an answer to plaintiff’s petition timely on its own behalf and on behalf of Gorney and Maise. On August 26, 1966, it filed a third party petition against Gorney and Maise seeking indemnity in event of a judgment against it on the principal demand, based on the alleged failure of cooperation of Gorney and Maise in the defense of plaintiff’s suit.

After some months of investigation without cooperation from Gorney, Great American concluded on the basis of its information and an alleged telephone statement by Gorney on October 11, 1967, that Maise was not a permissive user of the insured Buick automobile. At this point its course of action changed and it filed a supplemental answer on October 13, 1967, denying omnibus coverage of Maise.

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Bluebook (online)
222 So. 2d 70, 1969 La. App. LEXIS 6099, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bourgeois-v-great-american-insurance-lactapp-1969.