Calvin J. Hill, individually and as the of The Succession of Elnore Johnson Hill v. TMR Exploration, park Exploration, Inc. and Vitol Resources, Inc.

STATE OF LOUISIANA

COURT OF APPEAL, FIRST CIRCUIT

CALVIN J. HILL, INDIVIDUALLY AND NO. 2019 CW 1090
AS THE EXECUTOR OF THE SUCCESSION
OF ELNORA JOHNSON HILL

VERSUS
DEC 2 l 2019
TMR EXPLORATION, INC., PARK

EXPLORATION, INC., AND VITOL
RESOURCES, INC.

In Re: New Hampshire Insurance Company, National Union Fire
Insurance Company of Pittsburgh, PA., and AIG

Specialty Insurance Company, applying for supervisory
writs, 18th Judicial District Court, Parish of West
Baton Rouge, No. 41245.

BEFORE: HIGGINBOTHAM, PENZATO, AND LANIER, JJ.

WRIT GRANTED IN PART, DENIED IN PART. The portion of the
trial court' s June 24, 2019 the plaintiffs'
ruling granting
Motion for Partial Judgment Insurance
Summary Regarding
Coverage Provided by the Defendant Insurers" against relators,

National Union Fire Insurance Pittsburgh,
Company of PA., New
Hampshire Insurance Company, and AIG Specialty Insurance
Company, is reversed. The plaintiffs failed to
they are prove

entitled to summary judgment
a matter of law; therefore, the as
plaintiffs' " Motion for Partial Judgment
Summary Regarding
Insurance Coverage Provided by the Defendant Insurers" is
denied. Further, we reverse the portion of the trial court' s
June 24, 2019 ruling denying relators' motion for summary
judgment as to the plaintiffs' claims for damages under La. R. S.
22: 1892, La. R. S. 22: 1893, and La. R. S. 22: 1973. Statutory
penalties are inappropriate when the insurer has a reasonable
basis to defend the claim and was acting in good - faith reliance
on that defense. Bingham v. State Farm Mutual Auto. Ins. Co.,
2012- 0375 ( La. App. 1st Cir. 11/ 2/ 12), 2012 WL 5386619, * 2
unpublished) ( citations omitted). Relators pointed out the
absence of factual support for the plaintiffs' claim for bad
faith damages as the evidence showed they had reasonable doubts
concerning coverage for the plaintiffs' claims and, therefore,
had the right to litigate these claims without
being subjected
to damages and penalties. Calogero v.
Safeway Ins. Co. of

Louisiana, 99- 1625 ( La. 1/ 19/ 00), 753 So. 2d 170, 173 ( citations
omitted). Therefore, we grant National Union Fire Insurance
Company of Pittsburgh, PA., New Hampshire Insurance Company, and
AIG Specialty Insurance Company' s motion for summary judgment,
in part, and dismiss the plaintiffs' claims asserted against
them pursuant to La. R. S. 22: 1892, La. R. S. 22: 1893, and La.
R. S. 22: 1973, with prejudice. The is denied
writ in all other
respects.

TMH

AHP
WIL

COURT OF APPEAL, FIRST CIRCUIT

REPWUTY FOR THE
CLERK OF
COURT
COURT