Metoyer v. Auto Club Family Insurance Co.
United States District Court for the Eastern District of Louisiana
536 F. Supp. 2d 664 (2008)
- Written by Tammy Boggs, JD
Facts
The New Orleans home of Carlos Metoyer (plaintiff) suffered damage from Hurricane Katrina. Metoyer obtained a $150,000 grant from the Louisiana Recovery Authority (LRA) to rebuild his home. The LRA was a state-run program funded by the federal government, and the intent of the program was to compensate homeowners affected by the hurricane. Grant applicants were required to subrogate their right to private-insurance payments to the LRA as a condition of receiving a grant. In March 2007, Metoyer sued his home insurer, Auto Club Family Insurance Co. (Auto Club) (defendant) for breach of contract to recover amounts allegedly due under his insurance contract. Prior to trial, Metoyer filed a motion in limine to exclude evidence of his LRA proceeds based on application of the collateral-source rule. Metoyer argued that Auto Club could not use his receipt of LRA proceeds to reduce any damage award and that evidence of the proceeds might taint the jury. Auto Club argued in response that the collateral-source rule did not apply in contract actions and that, unlike in cases in which the rule had been found to apply, Metoyer might obtain a windfall or double recovery from application of the collateral-source rule.
Rule of Law
Issue
Holding and Reasoning (Barbier, J.)
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