May 7, 2025
ShareKelley Kronenberg Secures Dismissal in Louisiana Direct Action Case
Kelley Kronenberg Attorney Michael Danon secured a significant procedural victory for AmGuard Insurance Company in Lafayette Parish, Louisiana, obtaining dismissal from a traffic accident lawsuit through novel application of recently amended state law.
The case involved a plaintiff who filed suit against both the insured and AmGuard directly under Louisiana’s direct action statute. However, in 2024, Louisiana amended this longstanding statute to prohibit plaintiffs from naming insurance carriers as direct defendants in many circumstances.
Recognizing the opportunity presented by this legislative change, Michael filed an exception of no right of action (Louisiana’s equivalent to a motion to dismiss), arguing that the amended statute should apply retroactively as a procedural rather than substantive change in law. This interpretation represented a cutting-edge legal position in Louisiana jurisprudence, with only a handful of appellate courts having addressed the issue since the amendment took effect.
During a concise but effective hearing before Judge David Smith, Michael persuasively presented authorities supporting retroactive application of the amended statute. After just ten minutes of argument, the Court agreed with AmGuard’s position and dismissed the carrier from the lawsuit entirely.
This dismissal represents a significant achievement, as it is among only a small number of cases where insurance carriers have successfully secured dismissal under this new interpretation since February. The ruling not only eliminated AmGuard’s direct liability exposure but also established favorable precedent that may benefit carriers in similar Louisiana cases going forward.
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