Case Name: Walter A. PACE, Jr. v. Sharon Porter CAGE, et al.
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1982-09-07
Citations: 419 So. 2d 443
Docket Number: No. 81-C-0547
Parties: Walter A. PACE, Jr. v. Sharon Porter CAGE, et al.
Judges: BLANCHE, J., dissents and hands down reasons.
Reporter: Southern Reporter, Second Series
Volume: 419
Pages: 443–444

Head Matter:
Walter A. PACE, Jr. v. Sharon Porter CAGE, et al.
No. 81-C-0547.
Supreme Court of Louisiana.
Sept. 7, 1982.
Edward W. Gray, Baton Rouge, for applicant.
Dan B. Cornett, Taylor & Cornett, Ltd., Horace C. Lane, Lane & Clesi, Kenneth E. Barnette, Seale, Smith & Phelps, Baton Rouge, for respondent.

Opinion:
DENNIS, Justice.
We granted writs in this case to resolve a conflict between the court of appeal opinion herein and a recent decision of this court. After reviewing the record and considering arguments of counsel we conclude that the result reached by the court of appeal was correct, although it was based on incorrect legal precepts. The court of appeal's conclusion that an uninsured motorist insurer which makes payment to its insured cannot become conventionally sub-rogated to its insured's cause of action against the tortfeasor is disapproved expressly as being in conflict with this court's decision in Bond v. Commercial Assurance Co., 407 So.2d 401 (La.1981) (On Rehearing). The court of appeal's decision, which in effect, sustained the third-party defendant's exception of no cause of action was, nevertheless, correct in this case. The parties stipulated that, before the uninsured motorist insurer made any payment to the insured the insured had completely discharged the tortfeasor from any obligation to the insured in return for a cash payment of $5,000. Consequently, at the time the uninsured motorist carrier made payment to the insured the insured had no rights against his former debtor to subrogate to the insurer. See La.C.C. arts. 2159 et seq.; 2 M. Planiol, Civil Law Treatise, pt. 1, no. 480 at 274 (11th ed. La.St.L.Inst. trans. 1959).
For the reasons assigned, the judgment of the court of appeal sustaining the exception of no cause of action is affirmed.
AFFIRMED.
BLANCHE, J., dissents and hands down reasons.