Opinion ID: 1811133
Heading Depth: 1
Heading Rank: 13

Heading: The Chancery Court erred in the calculation of damages, attorney's fees, and interest.

Text: Finally, Valley Forge challenges the lower court rulings on the $55,000 second payment, the $30,000 in attorneys' fees, and the interest on the $25,000 payment ordered from Nationwide to Tina. First, Valley Forge argues that even if the first payment it made to the Stricklands was not an effective settlement of Tina's claim, payment of the full amount a second time would only be appropriate if there were evidence that the funds were improperly used. The insurer cites Succession of Emonot, 109 La. 359, 33 So. 368 (1902), for the proposition that if a tutor accepts payment in settlement of a claim belonging to a minor without court approval, the tutor becomes liable to the minor only for the difference between the amount received by the minor and the total amount which the court finds should have been received. However, the tutor's liability for mishandling monies is not at issue in this case. Under applicable Louisiana law, a compromise of a minor's claim without court approval is a nullity. See Guidry v. Bowers, 458 So.2d 933 (La. App. 1st Cir.1984). Therefore, under strict application of Louisiana law, Tina never received anything. Thus, Valley Forge must pay the full limit again. Accordingly, the $55,000 award was apparently proper. Next, Valley Forge challenges the award of attorney fees and expenses and prejudgment interest at the legal rate on the $25,000 payment from Nationwide. Attorney fees may be awarded in cases where punitive damages are proper, regardless of the existence of contingent fee arrangements. Likewise, in the absence of statutory authority, prejudgment interest is also allowable in cases where punitive damages are justified. See Stanton & Associates v. Bryant Const. Co., 464 So.2d 499, 502 (Miss. 1985). As discussed above, punitive damages were proper in this case and consequently the award of attorney fees and interest was not error.