Hick’s Auto Sales, LLC v. Go Auto Insurance Company, et al.

Summary

The Louisiana Second Circuit Court of Appeal affirmed the dismissal of Hick’s Auto Sales, LLC’s claims against Go Auto Insurance Company arising from a vehicle total-loss claim. The court held that the letter of guarantee did not create a contractual obligation requiring GoAuto to pay the remaining lien balance because it did not bind GoAuto to issue payment. The court also upheld the assessment of appellate costs against Hick’s Auto.

Holdings

1. The letter of guarantee did not create a contractual obligation requiring GoAuto to issue an additional check to Hick’s Auto because it did not show GoAuto’s consent to be bound and did not bind both parties.
2. The trial court was not clearly wrong in finding that the letter of guarantee did not obligate GoAuto to pay Hick’s Auto.

Questions Presented

1. Whether the letter of guarantee created an enforceable contract obligating GoAuto to pay Hick’s Auto the remaining vehicle-lien balance.
2. Whether the trial court clearly erred in finding that the letter of guarantee did not obligate GoAuto to issue an additional payment.

Disposition

affirmed