Opinion
2022 CW 0981
02-28-2023
PAMELA MITCHELL BRADEN v. ROBIN MARSHALL, GO AUTO INSURANCE COMPANY, AND LOUISIANA FARM BUREAU CASUALTY INSURANCE COMPANY
In Re: GoAuto Insurance Company, applying for supervisory writs, 21st Judicial District Court, Parish of St. Helena, No. 24681.
BEFORE: McCLENDON, HOLDRIDGE, AND GREENE, JJ.
WRIT GRANTED. The district court's August 18, 2022 judgment denying the motion for summary judgment filed by Defendant, GoAuto Insurance Company (GoAuto), and granting the motion for summary judgment filed by Plaintiff, Pamela Mitchell Braden (Braden), is hereby reversed. Defendant, Robin Marshall (Marshall), was involved in an automobile accident with Braden on July 16, 2021, resulting in Braden filing suit against Marshall and her purported insurer, GoAuto. Marshall initially applied for automobile insurance from GoAuto, opting to make a downpayment to GoAuto for the premium and financing the remaining balance through a finance company as provided in La. R.S. 9:3550. Pursuant to La. R.S. 9:3550 (G), such an insurance policy may be cancelled upon default of the insured's payment obligation. In order to cancel the policy, La. R.S. 9:3550(G) requires that the finance agreement contain a power of attorney allowing the financing company to effectuate cancellation. If such power of attorney exists, cancelling is only then permitted if it is done in accordance with the statutory requirements.
GoAuto submitted uncontroverted evidence demonstrating its compliance with La. R.S. 9:3550 in cancelling Marshall's insurance policy prior to the date of the accident. The evidence shows that GoAuto issued automobile policy no. 851440 to Marshall, which was effective December 13, 2020. In connection with that original policy, Marshall executed a financing agreement with a financing company which contained a power of attorney authorizing the company to request cancellation of her policy for failure to pay the agreed upon installments. The power of attorney also authorized the agent to "execute and deliver, on [Marshall's] behalf, all Consumer Insurance Premium Finance Agreements (including any promissory notes, security agreements and powers of attorney contained therein, or included as part thereof) in connection with, or related to, any renewal (s) of the policy(ies) of personal automobile insurance[.]" Upon the six-month expiration of policy no. 851440, Marshall renewed her policy for an additional six-month period. The renewed policy was identified as policy no. 851440-12, and was effective June 21, 2021. Again, Marshall made a down payment to GoAuto and financed the remaining balance. Marshall's agent executed a finance agreement on Marshall's behalf, agreeing to pay five equal monthly installments in the amount of $217.00 beginning June 27, 2021, through October 27, 2021, with one final payment of $219.00 due on November 27, 2021. Marshall failed to make the June 27, 2021 payment, and a notice of cancellation for nonpayment was sent to her last known registered address. The notice informed Marshall that her policy would be cancelled, effective July 8, 2021, if payment was not made. Pursuant to the power of attorney, Marshall's agent, Gregory Tramontin (Tramontin) sent a request to GoAuto requesting that the policy be cancelled. On July 8, 2021, the financing company sent notice of cancellation to GoAuto along with a statement certifying compliance with the requirements enumerated in La. R.S. 9:3550 (G)(3)(i)-(iv). Upon receipt of the notice and statement form, GoAuto canceled the insurance policy and returned unearned premiums to the financing company as statutorily required. As the policy was cancelled prior to the accident, Marshall did not have a GoAuto policy in effect at the time of the accident.
The trial court erred in finding that Tramontin, as the purported owner of GoAuto, engaged in unauthorized self-dealing by signing the renewed finance agreement as Marshall's agent resulting in the absence of a valid finance agreement as required to cancel the policy under La. R.S. 9:3550. Braden failed to offer any competent summary judgment evidence establishing the relationship between Tramontin and GoAuto or how the purported relationship invalidated the renewed finance agreement based upon the power of attorney Marshall signed and used to renew the policy ab intio.
Accordingly, the motion for summary judgment filed by Defendant, GoAuto Insurance Company, is granted and the claims asserted by Plaintiff, Pamela Braden, against Defendant, GoAuto Insurance Company, are dismissed with prejudice. Plaintiff's, Pamela Braden's, cross motion for summary judgment is also denied.
PMc
HG
Holdridge, J., concurs in the result, but would have granted oral argument to the parties.