Leake Andersson Secures Summary Judgment Victory for Insurance Producer Clients 

Leake Andersson LLP recently secured a complete defense victory on behalf of its insurance clients, with the trial court granting summary judgment and dismissing all claims asserted against them. The ruling represents an important reaffirmation of Louisiana law governing permissive driver coverage and rejects an insurer’s attempt to avoid coverage through federal preemption arguments. 

Background of the Case 

The case arose after an insurer filed suit against an insurance agent and agency, alleging negligence for failing to add an employee of the insured as a named driver under the applicable automobile insurance policy. The employee was later involved in a motor vehicle accident, and the insurer contended that the alleged omission resulted in a lack of coverage. 

On behalf of the insurance agency and agent, Leake Andersson moved for summary judgment, arguing that no negligence occurred because the policy unambiguously provided coverage for permissive drivers. The defense further relied on Louisiana Revised Statute 32:900 — Louisiana’s Motor Vehicle Safety Responsibility Law — which mandates coverage for permissive drivers regardless of whether they are expressly named in the policy. 

The Insurer’s Federal Preemption Argument 

In opposition, the insurer attempted to defeat summary judgment by invoking the federal Liability Risk Retention Act, asserting that because it operated as a Risk Retention Group, Louisiana Revised Statute 32:900 was preempted by federal law and therefore inapplicable. 

The defense successfully met its burden of proof, demonstrating that Louisiana’s omnibus clause was not preempted by the Liability Risk Retention Act and that Louisiana law continued to mandate coverage for permissive drivers under policies issued or delivered in the state. 

The Court’s Ruling 

The trial court rejected the insurer’s federal preemption argument and held that Louisiana Revised Statute 32:900 applied and mandated coverage for all permissive users of vehicles insured under Louisiana policies. As a result, the court granted summary judgment in favor of the insurance agency and agent, dismissing the claims in their entirety and delivering a complete victory for the Leake Andersson client. 

Congratulations to the Defense Team 

This result was driven by the excellent and thorough briefing prepared by Associate Attorney Jessica Longacre, which the trial court largely adopted in its judgment and reasons. Her work reflects Leake Andersson’s continued commitment to providing strategic, detail-driven defense for insurance professionals facing complex coverage and liability disputes.