Heap v. Newark Insurance Co.

129 So. 2d 801, 1961 La. App. LEXIS 1882
CourtLouisiana Court of Appeal
DecidedApril 10, 1961
DocketNo. 5212
StatusPublished
Cited by2 cases

This text of 129 So. 2d 801 (Heap v. Newark Insurance Co.) 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
Heap v. Newark Insurance Co., 129 So. 2d 801, 1961 La. App. LEXIS 1882 (La. Ct. App. 1961).

Opinion

ELLIS, Judge.

The plaintiff, James E. Heap, brought four suits in order to collect the proceeds from four fire insurance policies he had on a building known as the “Chico Club” near Gonzales, Louisiana. The plaintiff filed separate suits against each of the four insurance companies, these suits being consolidated for the purposes of trial.

In these suits plaintiff prayed that the defendants pay the face amount of the policy, plus all penalties, interest and attorney’s fees, as provided in the LSA-Revised Statutes 22:658.

On October 30, 1953, the plaintiff was issued a policy by the Eagle Fire Insurance Company on his Restaurant and Bar known as “Chico Club”, the face amount of the policy being $2,000. On that same date, another policy with the American Equitable Assurance Company of New York was issued to the plaintiff covering the “Chico Club”.

On December 31, 1953, two additional policies were issued to the plaintiff, one being with the defendant, Newark Insurance Company, and the other with Employers Fire Insurance Company, both in the face amount of $2,000 and covering the “Chico Club”.

On January 17, 1954, the “Chico Club” with all its contents was totally destroyed by fire. Petitioner alleges he made the proper demands and furnished the required proof of losses, but despite amicable demand, the defendants arbitrarily refused to pay the amount due under the policy for the fire loss, therefore the full amount of the policy, plus penalties and attorney’s fees are due.

All four of the defendants filed practically identical affirmative defenses alleging the affirmative defense of arson and that the plaintiff fraudulently withheld the information from the defendant that the fire was of an incendiary origin.

The defendants alleged that the residents in the vicinity of the “Chico Club” petitioned the public authorities to deny a renewal of the permit for the sale of alcoholic beverages.

[802]*802Further pursuing the affirmative defense, the defendants alleged that the “Chico Club” was mortgaged to National Bank in Baton Rouge and that during the year prior to the fire the petitioner borrowed money from Tony Acosta to make the payments on the mortgages.

The defendants then alleged the salary of petitioner was $156 per month during the year immediately prior to the fire and that the petitioner had no other sottrce of income and that on January 17th the petitioner was in serious financial difficulties being indebted to the bank, the Baton Rouge Securities Company, as well as Mr. Acosta. They also alleged that the United States Government filed a delinquent income tax lien against petitioner’s property in the sum of $1,900. They alleged that Roberts-East-land Insurance Agency by registered letter January 8, 1954 notified the petitioner that his contracts of insurance mentioned above would be cancelled on January 18, 1954.

Further, they alleged that the petitioner advertised in the Gonzales Weekly to sell an air conditioner together with other restaurant fixtures and that any prospective buyers apply at the “Chico Club” and that he advertised to sell or rent for $75 per month.

The defendants -next alleged that the petitioner brought an alcoholic to the “Chico Club” arid began to serve him with liquor, encouraging him to set fire to the “Chico Club”. That on the afternoon of January 17th the petitioner closed the Butane ga,s line, unscrewed the fuses and left, and that the alcoholic did set fire to the club as requested by plaintiff.

The record in this case is very lengthy dealing a great deal with the cross examination of the plaintiff himself. After the trial on the merits judgment was rendered dismissing plaintiff’s suit, from which he perfected an appeal to the Supreme Court. Pursuant to the amendments of Art. 7, Secs. 29 and 30, Louisiana Constitution, LSA, this appeal was transferred to this court.

It is significant to point out that during the cross examination of the plaintiff the trial judge instructed him time and again to answer the questions of the defendants’ counsel and openly charged him with being deliberately evasive in his answers. His testimony, as a matter of fact, in many instances shows that he had a convenient lapse of memory, but upon being pressed or shown convincing proof contrary to his position he would eventually, grudgingly admit many of the questions propounded by the defendants were true.

The facts in the case reveal that the plaintiff bought the “Chico Club” from a Mr. Luther Dodge in June of 1949. Petitioner then operated the store for several months and rented it to a Mr. McCrory about the first of 1950. Approximately in 1951 Mr. McCrory and a Mr. Broussard went in partnerships on the property and operated the club until 1953.

The petitioner, although he originally testified that he received $100 per month from Mr. Broussard and Mr. McCrory, later admitted under cross examination that he gave them $25 back out of the $100 per month in order to repair the place and keep it up to date. Therefore, we can only conclude that he was actually only receiving $75 as was urged by counsel for defendant herein.

Sometime during 1952, the Airline Highway was moved and the Old .Highway upon which the “Chico Club” was located became obsolete as most of the traffic through that area transferred to the new Airline Highway. After the license to sell alcoholic beverages had expired at the end of 1952, petitioner and his lessors were unable to obtain another permit, therefore, the club was closed down in 1953.

Despite plaintiff’s denial, the record does show that commencing in 1953 his financial status was such that a friend paid most of his notes for him on the mortgage covering the “Chico Club”. The petitioner once again under rigorous cross examination finally admitted that the same friend, Tony Acosta, paid the taxes for him in 1953, [803]*803as well as the insurance premiums. All of this money was loaned to him by Tony Acosta.

In 1953 the petitioner mortgaged his Studebaker automobile in order to obtain a loan from the Baton Rouge Securities Company. Although petitioner originally denied it, he finally admitted his payments were in arrears for the months of October, November and December of 1953, as well as January of 1954.

Petitioner made $87 every two weeks and from this the automobile payments were $54. The notes Acosta had paid for him on the club were $76 and some additional expenses of the petitioner were approximately $600 in doctor bills resulting from an injury he received in an altercation.

Petitioner also admitted that in January of 1954, he received correspondence from the Citizens National Bank requesting that he pay the balance due on his mortgage loan. He also admitted a $1,900 tax lien filed against his property shortly before the fire. .

In addition, it was proven, despite plaintiff’s denial, that the latter had attempted to induce by bribery an occupant of a store owned by him at Chipóla, Louisiana, to burn it down so that he might collect the, insurance of $3,000.

Motive on the part of the plaintiff is fully substantiated by the evidence. Financially plaintiff was in dire straits.

The testimony reflects that plaintiff was notified on January 8, 1954 of cancellation of the policies, effective January 18th.

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Related

Whittington v. Sowela Technical Institute
438 So. 2d 236 (Louisiana Court of Appeal, 1983)
Heap v. Employers Fire Insurance
129 So. 2d 804 (Louisiana Court of Appeal, 1961)

Cite This Page — Counsel Stack

Bluebook (online)
129 So. 2d 801, 1961 La. App. LEXIS 1882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heap-v-newark-insurance-co-lactapp-1961.