Case Name: Dr. James W. LORIO v. SAFECO INSURANCE COMPANY OF AMERICA et al.
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 1975-02-10
Citations: 316 So. 2d 744
Docket Number: No. 10133
Parties: Dr. James W. LORIO v. SAFECO INSURANCE COMPANY OF AMERICA et al.
Judges: Before SARTAIN, ELLIS and de la HOUSSAYE, JJ.
Reporter: Southern Reporter, Second Series
Volume: 316
Pages: 744–749

Head Matter:
Dr. James W. LORIO v. SAFECO INSURANCE COMPANY OF AMERICA et al.
No. 10133.
Court of Appeal of Louisiana, First Circuit.
Feb. 10, 1975.
Rehearing Denied Aug. 26, 1975.
On Rehearing June 30, 1975.
Writ Refused Sept. 17, 1975.
Ralph W. Brewer, Baton Rouge, for appellant.
James E. Moore, Baton Rouge, for defendant-appellee.
Donald Zuber and James H. Morgan, III, Baton Rouge, for Michael Norwood.
Before SARTAIN, ELLIS and de la HOUSSAYE, JJ.

Opinion:
de la HOUSSAYE, Judge. '
This is an appeal from a decision of the Lower Court granting a summary judgment in favor of defendants, Safeco Insurance Company of America and Michael Y. Norwood.
Suit was instituted by plaintiff-appellant, Dr. James W. Lorio, on February 22, 1974, in the 19th Judicial District Court against appellees, Michael Y. Norwood and Safeco Insurance Company for personal injuries resulting from an automobile accident which occurred on March 3, 1973, in East Baton Rouge Parish, Louisiana. It was alleged by appellant in his original petition that Michael Y. Norwood, while operating his automobile, struck the rear end of an automobile owned and driven by appellant, Dr. James W. Lorio, resulting in injuries to Dr. Lorio.'
It was further alleged that Norwood carried minimum liability insurance cover age in the amount of Five Thousand and No/100 ($5,000.00) Dollars, per person, per accident and Ten Thousand and No/100 ($10,000.00) Dollars per accident. Upon making a demand for payment to the claims agent of St. Paul Fire and Marine Insurance Company, which was the liability insurer of Norwood, Dr. Lorio, through his attorney, received the sum of Five Thousand and No/100 ($5,000.00) Dollars, this amount being the single limit per person, per accident provided for by Nor-wood's insurer. The record indicates that Dr. Lorio did not obtain any written consent of Safeco, his insurer, before accepting payment from Norwood's liability carrier.
Appellant's basic contention is that his own insurer is liable to him for additional payments based upon an uninsured motorist's coverage clause contained in his own policy which was in effect at the time of the accident. The amount of uninsured motorist's coverage provided to Dr. Lorio was Five Thousand and No/100 ($5,000.-00) Dollars, per person, per accident and Ten Thousand and No/100 ($10,000.00) Dollars per accident. This coverage was for two vehicles declared under the policy, one of which was the vehicle involved in the accident.
In response to this demand, both Nor-wood and Safeco filed motions for summary judgments resulting in a favorable judgment by the Lower Court, dismissing the suit of the Appellant against both defendant appellees.
Norwood argues that when his insurer paid Dr. Lorio the policy limits there was a complete release from any liability on his part. The facts found in the transcript tend to bear this statement out. Following the accident of March 3, 1973, the claims agent of St. Paul Fire and Marine Insurance Company investigated the accident and on September 21, 1973, directed correspondence and a settlement draft to Dr. Lorio's counsel tendering its policy limits of Five Thousand and No/100 ($5,000.00) Dollars "for all claims, past, present, future, that may arise out of this accident".
In addition to the tender letter, the settlement draft itself, immediately above the required endorsement, contained further language in part reciting: "The payee(s) endorsement below accept(s) and agree(s) that this draft constitutes the settlement in full of the claim or account described on the face hereof . . . ". The face of the draft described that payment was being made on behalf of Michael Norwood. There is nothing in the record to indicate that Dr. Lorio or his counsel reserved any rights upon accepting the settlement offer of Five Thousand and No/100 ($5,000.00) Dollars. The tender was accepted and the money was received when the draft was negotiated.
Norwood's counsel cites the case of Braudaway v. United Equitable Insurance Company, 208 So.2d 359 (La.App. 4th Cir. 1968) as authority to maintain a plea of estoppel based on the doctrine of accord and satisfaction. This case outlines the prerequisites leading to an accord and satisfaction, all of which are present herein. The requirements are as follows: (1) an unliquidated or a disputed claim; (2) a tender made by the debtor in full settlement of the claim; and (3) an acceptance of the tender by the creditor; when the first two requirements' are present, the creditor cannot accept the tender and, at the same time, avoid the fact that such acceptance constitutes full settlement of his claim. Braudaway, supra, at p. 360.
It is patently evident that all of the above requirements have been met here. There was definitely a genuine dispute involved as well as a tender of payment on behalf of Norwood. When plaintiff-appel-ant accepted payment by cashing the settlement check, he estopped himself from claiming; any further amounts which may have arisen from this claim.
Safeco Insurance Company of America, plaintiff-appellant's uninsured motorist carrier, argues that because there was a complete settlement, there can be no coverage under its policy issued to Dr. Lo-rio based upon an exclusionary clause stating that the policy does not apply "TO BODILY INJURY TO AN INSURED WITH RESPECT TO WHICH SUCH INSURED, HIS LEGAL REPRESENTATIVE OR ANY PERSON ENTITLED TO PAYMENT UNDER THIS COVERAGE SHALL, WITHOUT WRITTEN CONSENT OF SAFECO, MAKE ANY SETTLEMENT WITH ANY PERSON OR ORGANIZATION WHO MAY BE LEGALLY LIABLE THEREFOR."
Our reading of the transcript substantiates Safeco's allegation. As a result of this lack of consent, we feel that the exclusionary provision of Safeco's policy must apply. See Moreau v. State Farm Mutual Automobile Insurance Co., 298 So.2d 907 (La.App. 3rd Cir. 1974); Sylvest v. Employers Liability Assurance Corp., 252 So.2d 693 (La.App. 1st Cir. 1971).
For the foregoing reasons, the judgment appealed from is affirmed. All costs of this appeal are to be assessed to plaintiff-appellant.
Affirmed.
Before SARTAIN, ELLIS and BAR-NETTE, JJ.