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BRISTER v. BLUE CROSS & BLUE SHIELD

No. 89-6.

562 So.2d 1040 (1990)

Kenny P. BRISTER, Plaintiff-Appellant, v. BLUE CROSS AND BLUE SHIELD OF FLORIDA, INC., Defendant-Appellee.

Court of Appeal of Louisiana, Third Circuit.

May 23, 1990.

Attorney(s) appearing for the Case

Bass & Bass, Edward F. Bass, Lake Charles, for plaintiff/appellant.

Plauche, Smith & Nieset, Michael J. McNulty, III, Lake Charles, for defendant/appellee.

Before DOMENGEAUX, C.J., and FORET and STOKER, JJ.

STOKER, Judge.

ISSUE

This is a summary judgment case. In this appeal we deal with the settled rule that an insured who releases his debtor, thereby depriving the insurer of its subrogation rights under a policy, discharges the insurer from any liability under the insurance policy. We also have as an issue whether the insurer may nevertheless owe penalties and attorney's fees. We find that they may be recovered if the insurer is shown to be arbitrary and...

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