My Investments, LLC v. Liberty Surplus Insurance Corporation

STATE OF LOUISIANA

COURT OF APPEAL, FIRST CIRCUIT

MY INVESTMENTS, LLC NO. 2021 CW 1000

VERSUS

LIBERTY SURPLUS INSURANCE OCTOBER 1$, 2021
CORPORATION

In Re: Liberty Surplus Insurance Corporation, applying for
supervisory writs, 21st Judicial District Court,
Parish of Tangipahoa, No. 20201799.

BEFORE: LANIER, WOLFE, AND BURRIS,' JJ.

WRIT GRANTED IN PART AND DENIED IN PART. The portion of

the district court' s August 4, 2021 judgment denying the

peremptory exception of prescription filed by the defendant,
Liberty Surplus Insurance Corporation, as to damages alleged to
be covered by the policy, including structural damages and

business personal property as alleged in the petition, is
reversed. The plaintiff, My Investments, LLC, failed to file
suit within two years of the alleged loss pursuant to the
insurance policy at issue, which provides
that no one may bring
legal action unless "[ t] he action is brought within 2 years

after the date on which the direct physical loss or damage
occurred." See also La. R. S. 22: 868( B). Further, the plaintiff
failed to file suit within the limited extension of the
prescriptive period set forth in La. R. S. 9: 5829, which provides

that the " right to file a or motion to enforce
pleading any
right, claim,
or action which would have expired during the time
period of March 17, 2020, through July 5, 2020, shall expire on

July 6, 2020." Thus, the exception of prescription is granted,

in part, and plaintiff' s claim for damages alleged to be covered
by the policy, including structural damages and business
personal property as alleged in the petition, is prescribed, and

that claim is dismissed. However, the writ application is
denied as to plaintiff' s bad faith claims. First -party bad -
faith claims arise as a result of the insured' s contractual

relationship, thus, they are subject to a 10 - year prescriptive
period under La. Civ. Code art. 3499. Smith v. Citadel
Insurance Company, 2019- 00052 ( La. 10/ 22/ 19), 285 So. 3d 1062,
1064.

WIL
EW
WJB

COURT OF APPEAL, FIRST CIRCUIT

DEPUT C ERK OF COURT
FOR THE COURT

1 Judge William J. Burris, retired,
serving pro tempore by special appointment
of the Louisiana Supreme Court.