Gauthier v. General Accident Fire & Life Assurance Corp.

I agree with the majority that no bona fide dispute existed at the time of the settlement, therefore, the parties entered into a lump sum settlement discounted at a rate greater than 8% per annum, in violation of LSA-R.S. 23:1274(A).

For the following reasons, I respectfully dissent from the majority which denies plaintiff the penalty. LSA-R.S. 23:1274(A) is a mandatory statute “... shall not be discounted at a greater rate than eight percent per annum.” (Emphasis added.) It is well established that the term shall is mandatory. LSA-R.S. 1:3. In my view, the award of the penalty at one and…