Lerma v. Champion Insurance Co.

WHIPPLE, Judge.

The issue before this court is whether the Louisiana Insurance Guaranty Association (LIGA) is liable to plaintiff for penalties and attorney’s fees as a result of the arbitrary and capricious handling of the claim by Champion Insurance Company. For the following reasons, we reverse that part of the judgment of the trial court holding LIGA liable for statutory penalties and attorney’s fees.

Ben Lerma, Jr. was involved in an automobile accident on March 12, 1989. On March 19, 1989, his wife contacted Champion Insurance Company, their liability and collision carrier, and submitted…