This case comes to us on appeal from a judgment of the Twenty-Fourth Judicial District Court awarding plaintiff, Emile J. Spalitta, the sum of $18,389.43, plus legal interest, for damages due under a builder's risk insurance policy. Additionally, the court awarded 12% penalties and attorney's fees of $7,500.00 for arbitrary refusal to pay a claim under R.S. 22:658. The facts are as follows:
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