Buras v. BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA, 20421.
Decision Date | 10 January 1964 |
Docket Number | No. 20421.,20421. |
Parties | Mrs. Yvonne BURAS, Widow of Oliver V. Adolph, Appellant, v. BIRMINGHAM FIRE INSURANCE COMPANY OF PENNSYLVANIA, Appellee. |
Court | U.S. Court of Appeals — Fifth Circuit |
Reginald T. Badeaux, Jr., Robert R. Gisevius and John J. Cummings, III, New Orleans, La., for appellant.
P. A. Bienvenu, Bienvenu & Culver, and Timothy J. McNamara, New Orleans, La., for appellee.
Before CAMERON, WISDOM and GEWIN, Circuit Judges.
The narrow question presented here is whether the exaction provided for by LSA-R.S. 22:6561 is interest, or is not interest, in determining whether the amount involved is sufficient to hold federal jurisdiction over this case.
The district court determined, upon appellant's declaration, that the exaction was in the nature of a penalty, not interest. We think this holding is correct.
The Supreme Court and this Court has uniformly, in resolving such questions, looked to the amount the plaintiff in good faith demands and, here, it exceeds $10,000.00.
Affirmed.
1 "§ 656 Payment of claims; life policies; penalty
"All death claims arising under policies of insurance issued or delivered within this state shall be settled by the insurer within sixty days from the date of receipt of due proof of death and should the insurer fail to do so without just cause, then the amount due shall bear interest at the rate of six per cent per annum from date of receipt of due proof of death by the insurer until paid." Amended and reenacted Acts 1958, No. 125.
2 28 U.S.C.A. § 1332.
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