Lafleur v. Safeway Insurance Co.

Citations: 741 So. 2d 759; 99 La.App. 3 Cir. 191; 1999 La. App. LEXIS 1739; 1999 WL 346600Docket: No. 99-191

Court: Louisiana Court of Appeal; June 2, 1999; Louisiana; State Appellate Court

SummaryOriginalCytator Case TreatmentBackward CitatorAnalysis

EnglishEspañolSimplified EnglishEspañol Fácil

Safeway Insurance Company appeals a trial court judgment affirming that its automobile liability policy for Dianne Edwards was not properly canceled and that damages were awarded to Brooklyn Malveaux and Kaitlyn Arceneaux, minor passengers in a vehicle owned by Phillip Malveaux. State Farm, the dismissed uninsured/under-insured motorist carrier, emphasizes that if Safeway's cancellation is deemed invalid, State Farm's dismissal should also be reconsidered. The court finds that Safeway's policy was improperly canceled, thereby providing liability coverage for the plaintiffs' injuries. Given that the damages were below $10,000, State Farm's uninsured/underinsured coverage is not mandated, and its dismissal is upheld.

Key issues addressed include the validity of Safeway's policy cancellation under La.R.S. 9:5350 and whether sufficient evidence supported the damage awards. The accident occurred on November 15, 1997, when Dianne Edwards, while backing out of a parking space in rainy conditions, collided with Phillip Malveaux's improperly parked Mustang, resulting in injuries to Tarrell Lafleur and the two children. The trial court awarded $3,640.58 in damages, finding Edwards wholly at fault. Safeway contends that the policy was timely canceled and disputes the evidence for the damages claimed. However, both Lafleur and State Farm assert that the trial court correctly determined that Safeway's cancellation did not comply with statutory requirements, thus maintaining its liability coverage for the accident. The Safeway policy was active during the accident, as it was issued for a six-month term starting September 8, 1997, and expiring March 8, 1998.

The contract with the premium finance company granted it the authority to cancel the insurance policy due to non-payment. By September 30, 1997, the finance company identified Edwards as being in default and mailed a “10 DAY NOTICE OF CANCELLATION,” indicating cancellation would occur on October 10, 1997. However, evidence revealed that this notice was not mailed until October 1, 1997. Subsequently, the finance company issued a “CANCELLATION NOTICE” dated October 11, 1997, stating that coverage was canceled effective October 11, 1997, at 12:01 a.m. The trial court ruled the cancellation invalid for non-compliance with La.R.S. 9:3550, a decision affirmed on appeal. 

The appellate court's standard of review requires it to respect the trial court's factual findings unless there is a manifest error. The appellate court must determine if the trial court's findings lack a reasonable factual basis and if they are clearly wrong. Even if the appellate court might have drawn different inferences, it will not disturb reasonable factual determinations. Safeway raised three assignments of error: 1) contesting the trial court's finding that the policy cancellation did not comply with La.R.S. 9:3550; 2) arguing insufficient evidence supported damages awarded to Brooklyn Malveaux; and 3) claiming inadequate evidence for damages awarded to Kaitlyn Malveaux. La.R.S. 9:3550(G) governs insurance premium finance companies, stipulating that cancellation can occur only if proper notices and certifications are adhered to, emphasizing the necessity of compliance with statutory requirements for valid cancellations.

Louisiana courts mandate strict compliance with statutory requirements when a finance company utilizes its power of attorney to cancel an insurance policy. In *Britten v. Reavis*, the court emphasized that adherence to La.R.S. 9:3550(G) is crucial for accurately determining the cancellation date. In the present case, the trial court found that Safeway failed to mail the required ten-day notice of cancellation as claimed, which was supposed to be sent on September 30, 1997. The court rejected Safeway's explanation regarding a holiday or weekend affecting the postmark, confirming that both dates fell on a weekday. Additionally, the cancellation date in the second notice was incorrect, being set for October 11, 1997, instead of the October 10, 1997, specified in the initial notice. Relying on statutory language and precedent, the court deemed the cancellation invalid due to non-compliance. Safeway’s argument that the elapsed time between the mailing and cancellation still satisfied the ten-day requirement was dismissed, as strict compliance is necessary. The court affirmed that Safeway is liable for the plaintiffs' injuries, specifically noting damages related to minor Brooklyn Malveaux, who was in a car seat during the accident. The impact caused her to become cranky for a few weeks, prompting her mother to seek medical attention shortly after the incident. Safeway did not contest a separate damage award of $2,390.58 to Tarrell Lafleur.

Dr. Altamirano examined Brooklyn following an accident, diagnosing her with congestion and an upper respiratory infection, for which he prescribed medication and charged $75.00. The trial court awarded Brooklyn a total of $375.00, comprising the doctor's fee and $300.00 in general damages. Safeway disputed the connection between Brooklyn's condition and the accident, but the court found no error in its decision, believing Ms. Lafleur’s testimony about Brooklyn’s changed behavior post-accident.

Kaitlyn, three years old at the time of the accident and seated on the driver's side, bumped her head during the impact. Ms. Lafleur noted that Kaitlyn experienced sleep disturbances and head pain for weeks. Although Dr. Altamirano diagnosed her as a "well child" with no significant findings, the trial court recognized the challenges in assessing her injuries due to her young age. It awarded Kaitlyn $875.00, including $75.00 for the doctor’s visit and $800.00 for general damages. The court's reasoning was upheld.

Safeway did not contest the award to Ms. Lafleur, who suffered from back and head pain. Consequently, the judgment of the trial court in favor of Ms. Lafleur and her daughters, totaling $3,640.58 against Safeway Insurance Company of Louisiana, was affirmed. Additionally, the court upheld the invalidity of Safeway’s attempted policy cancellation, with all appeal costs assigned to Safeway.