Articles Posted in Bad Faith

Last Thursday, great strides were made in Louisiana towards preventing impaired drivers and ensuring better road safety in our area. Senate members unanimously approved a new bill requiring the use of ignition breathalyzers in vehicles for six months following a person’s first DWI conviction.

The Interlock devices work by requiring drivers to breathe into them in order to start the vehicle’s ignition and can detect BAC below a pre-set limit of 0.02—the equivalent to one alcoholic beverage. In Louisiana, the Blood Alcohol Content (BAC) is 0.8, meaning that any driver with a BAC over the limit is considered intoxicated under the law. If properly set up, the Interlock devices will prevent driving before the legal limit is reached, making it improbable to drive drunk.

According to the CDC, Ignition breathalyzers or interlock devices reduce repeat offenses by 70%.

With the fun and exciting energy of Mardi Gras, there are far busier streets with large crowds of moving pedestrians and jam-packed traffic that can lead to terrible accidents if you are not well equipped to handle them. As experts in personal injury practice, we would like to offer our best advice to keeping yourself and others safe during the season.

Mardi Gras Safety Tips:

  1. Stay behind barricades.

Personal injury cases arise in many different shapes, sizes, and kinds. Whether it be a small injury from a simple car accident or life-altering damage from a plane crash, negligence may be found and recovery necessary. But not matter the type of case, all claims have one thing in common: a time limit for how long you can bring your case to court. When a plaintiff fails to bring their claim within this time period, the court will refuse to hear the case and a settlement cannot be made. So, how much time do you have to file your claim?

Under Louisiana Civil Code Article 3492, an action for personal injury, not relating to a faulty product, must be filed in court within one year of the date of the injury. This means as of the day your injuries or damages are sustained, the prescriptive period starts running. This rule applies to injuries arising from: (1) car accidents; (2) slip and falls; (3) pedestrian accidents; and (4) dog bites or attacks.

Not only should prescription be considered to ensure a claim may be filed, but waiting too long may raise other issues. As time passes, witnesses may be harder to find, videos and pictures of an accident may be lost, and other evidence may be destroyed. Additionally, filing sooner allows more time for settlement negotiations to be made.

The Louisiana Sportsmen Coalition is in a battle with the Louisiana oil industry over rights to use coastal marshwaters for their respective enterprises. Representatives of local fisherman argue that oil companies who own nearby lands have unjustly also claimed ownership of adjacent waters that flow in and out of manmade channels. The sportsmen state that the waters, though very good for fishing, are being treated as off-limits, and the fishermen themselves are being treated as trespassers. Specifically, they say, “It has gotten to the point where [oil companies] are having local law enforcement agencies, like the sheriff’s office and justices of peace, write criminal trespassing tickets to people.”

The conflict came to a head last year when a professional Bassmaster fishing tournament was held in these areas. The world-renowned fishermen, individuals who make a living by these tournaments, unknowingly wandered into “privately owned” waters and were met by authorities. Following the tournament, the Bass Angler Sportsmen Society (B.A.S.S.), the national organization responsible for the well-known Bassmaster tournaments officially announced that it would no longer schedule professional tournaments in Louisiana tidewaters, a decision that will, without doubt, negatively impact the state’s fishing industry. Thus, as the sportsman’s coalition argues, the battle over water access is more than a debate about who can travel where; it is actually a battle over the prioritization of industries, and favor traditionally lies with the oil industry.

Unfortunately for the fishermen, a recently proposed bill that would have granted public access to the marshwater failed in Louisiana’s House of Representatives. The bill argued that because the waters are “running waters”—they freely flow into positively public waterways such as the Gulf of Mexico—they cannot be partitioned as either public or private, and therefore, their default status would be considered public. Opponents of the bill argued that just as one can claim ownership of dry land, one can claim ownership of the bottomlands underneath the water, for coastal erosion is constantly converting dryland into bottomland. The House’s vote reinforces Louisiana’s status as one of the only coastal states that does not consider tidal waters open for public use.

In the District Court of Harris County, Texas, a jury awarded over $40 million to owners of oil production facilities nearly 12 years after Hurricane Rita struck the Gulf Coast. The oil company plaintiff hired experienced trial lawyers to bring their claim before the civil justice system and hold their insurer accountable for the damages suffered.

In 2005, Prime Natural Resource owned oil and gas drilling platforms off of the coast of Morgan City. These platforms were insured by underwriters at Lloyd’s, London. Hurricane Rita struck Prime’s wells in September 2005 causing over $20 million in damages, including debris removal and restoration. Despite being aware of the damages for over 10 years, the insurance company repeatedly claimed its policy did not cover this particular damage. The policy covering the oil and gas drilling platform was a Wellsure policy, one often used in the energy industry. The Underwriters admitted that they insured the platform, but refused to pay for any individual parts of the well damaged by the Hurricane.

Both the trial court and court of appeals refused to look beyond the language of the insurance contract granting summary judgment in favor of Lloyd’s. The court’s looked to the intent of the parties in interpreting the policy. On appeal Prime brought four causes of action in front of the District Court: (1) breach of contract, (2) unfair or deceptive acts under the insurance code, (3) failure to promptly pay claims, and (4) breach of common law duty of good faith. After a six-week trial, the jury awarded $27.3 million in punitive damages, while also finding the insurers both breached a contract, as well as, violated the state insurance code. In addition to the punitive damages, Prime was awarded $10.9 million in bad faith, $1.8 million in actual damages, and $1.6 million in legal fees.

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