Opinion ID: 509575
Heading Depth: 2
Heading Rank: 3

Heading: Penalties and Interest under Louisiana Law

Text: 25 Appellants contend that under LA.REV.STAT.ANN. Sec. 22:658 7 they are entitled to a penalty or damages equal to ten percent of the amount of their claim, along with attorney's fees for the failure of American General to pay them the insurance policy proceeds within 60 days. 26 In other Louisiana cases in which penalties and attorney's fees have been awarded under Sec. 22:658, the award has been made to the party eventually found entitled to the disputed insurance proceeds. The statutory language itself appears to provide for such penalties and fees only if the party seeking them is entitled to the policy proceeds. The penalty is to be in addition to the amount of the loss, and attorney's fees are for the prosecution and collection of such loss. Section 22:658(B)(1), emphasis added. The Reeses were not entitled to the proceeds of the policy. They obviously have no standing to assert a penalty for non-payment of proceeds to which they have no claim. We amend the district court's order to state that appellants are not entitled to penalties or attorney's fees under Sec. 22:658.