Louisiana Personal Injury Lawyer Blog
In a recent decision, the Louisiana Court of Appeal reversed a summary judgment granted in favor of attorneys in a legal malpractice lawsuit. The case, highlights the critical distinction between contractual and delictual claims in insurance disputes and the potential impact on the applicable statute of limitations.
Michael Belanger was involved in a car accident and obtained a judgment against the other driver for an amount exceeding her insurance policy limits. He later sued the driver’s insurance company (GEICO) for bad faith failure to settle within policy limits. Belanger was represented by the same attorneys in both cases.
GEICO successfully argued in federal court that Belanger’s bad faith claim had prescribed (or expired due to the statute of limitations) because it was subject to a one-year prescriptive period for delictual (tort) actions. Belanger then sued his attorneys for legal malpractice, claiming they failed to argue that a ten-year prescriptive period for contractual actions applied.