Arceneaux v. Bellard

• Decision Date: 28 January 1963
• Docket Number: No. 753,753
• Citation: 149 So.2d 444
• Parties: Ferdie ARCENEAUX, Plaintiff and Appellant, v. Homer BELLARD, Individually, Homer Bellard, d/b/a Homer Bellard Insurance Agency and Lloyds (Lloyds of London), Defendants and Appellees.
• Court: Court of Appeal of Louisiana — District of US

Page 444

149 So.2d 444

Ferdie ARCENEAUX, Plaintiff and Appellant, v. Homer BELLARD, Individually, Homer Bellard, d/b/a Homer Bellard Insurance Agency and Lloyds (Lloyds of London), Defendants and Appellees.

No. 753.

Court of Appeal of Louisiana, Third Circuit.

Jan. 28, 1963.

Rehearing Denied Feb. 20, 1963.

Certiorari Refused March 25, 1963.

Robert Brinkman, Opelousas, for plaintiff-appellant.

Vidrine & Rivette, by Andrew Vidrine, Church Point, for defendants-appellees.

Before TATE, CULPEPPER and HOOD, JJ.

HOOD, Judge.

Plaintiff, Ferdie Arceneaux, instituted this suit for damages against Homer Bellard, individually and as owner of Church Point Insurance Agency, and against that agency's errors and omissions insurer, Lloyds of London. The suit was dismissed as to the last-named defendant on an exception of no cause of action, and no issue is raised here as to that dismissal. The remaining defendant, Bellard, admits an indebtedness of $2,500.00, but denies any further liability. After trial on the merits, judgment was rendered by the district court in favor of plaintiff for the sum of $2,500.00, and plaintiff has appealed.

Plaintiff contends that in July, 1959, defendant or his agent advised him that he was covered under a collision and liability insurance policy in connection with the operation of a tractor and trailer when actually no such policy had been issued, and that plaintiff, relying on the advice, operated the tractor and trailer and sustained losses which he would have been able to recover had the insurance been in effect. Defendant admits that he advised plaintiff that he was insured under a policy providing for collision insurance only, with a maximum liability of $2,500.00, but he denies that he or his representative informed plaintiff that he had been or would be provided with any other type of insurance coverage. A factual issue is presented, therefore, as to whether defendant or his representative informed plaintiff, or misled him into thinking, that he was covered by any type of insurance other than that admitted by defendant.

The jurisprudence of this state is settled to the effect that recovery may be allowed a prospective insured where the actions of the insurance agent are shown to be such as to warrant an assumption by the insured that he was adequately covered by suitable insurance. Bourgeois v. Beeson-Warner Insurance Agency, Inc., La.App. 4 Cir., 144 So.2d 563; Brown v. Stephens Buick Co., La.App. 4 Cir., 139 So.2d 579; Fisk v. Kildare Truck Line, Inc., La.App.Orl., 112 So.2d 310; Smith v. Travelers Fire Insurance Co., La.App. 2 Cir., 90 So.2d 586. See also Bates v. Bowles-White and Company, Wash., 353 P.2d 663; 29 Am.Jur., Insurance, § 165; 44 C.J.S. Insurance § 172; 29 A.L.R.2d 171 et seq.

The evidence in this case establishes that plaintiff purchased a truck-tractor and a van-type trailer in July, 1959. In order to finance the purchase of this uint he borrowed $2,500.00 from Farmers State Bank and Trust Company, of Church Point, Louisiana, the loan being secured by a chattel mortgage on the tractor and trailer in favor of the bank. The loan transaction was handled by defendant Bellard, in his capacity as Executive Vice-President of the Bank. At the time the loan was completed, Bellard referred plaintiff to Church Point Insurance Agency, which was owned by defendant and operated by his son, Ronald Bellard, for the purpose of obtaining at least collision insurance on the mortgage equipment, collision insurance being required by the bank in connection with the loan. Plaintiff then discussed with defendant and his son the matter of obtaining public liability, property damage and medical payments coverage, as well as collision insurance, on the tractor and trailer, but plaintiff's recollection of what was said in these discussions differs materially from that of defendant and his son.

The tractor and trailer were involved in an accident a few days after the abovementioned loan was negotiated, and as a result of this accident the mortgaged vehicles were practically demolished, and plaintiff sustained some losses, among which was a payment of $1,200.00 made by plaintiff to settle a claim against him for damages arising out of the accident. He now seeks to recover from defendant the sum of $9,819.78, plus attorney's fees, as the damages which he allegedly sustained because of defendant's failure to provide him with the insurance he had requested or to notify him of the fact that the insurance could not be obtained.

Arceneaux testified that on the day the above-mentioned loan was negotiated he applied to defendant's son for collision, public liability and medical payments insurance covering the operation of these vehicles, and that defendant's son, after taking down the information furnished by plaintiff, informed him that he was covered and that the policy and statement for the premium would be mailed to plaintiff later. He further stated that after the accident occurred, defendant informed him that 'the insurance would take care of it,' and for plaintiff not to worry about it.

Defendant and his son, on the other hand, deny that they informed plaintiff that he was covered by that type insurance, but, on the contrary, they maintain that they informed him that he was insured only for physical damage to the truck, that is, collision insurance up to the limit of the amount which he had borrowed from the bank. Ronald Bellard testified that he first informed plaintiff that he would be fully covered,...