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SUPREME COURT OF LOUISIANA 98-C-1101

STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY AS SUBROGEE OF WILLIAM E. FRANKLIN V. GEORGE BERTHELOT ET AL

ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, FOURTH CIRCUIT, PARISH OF ORLEANS KNOLL, Justice* This case presents the issue of whether a tort victim can recover sales tax from a tortfeasor who causes the total loss of the tort victim's vehicle. William E. Franklin, an insured of State Farm Mutual Automobile Insurance Co. (State Farm), and George Berthelot, an insured of Southern United Fire Insurance Co. (SUFIC), were involved in a vehicular accident on April 13, 1995. On that date, it is undisputed that Berthelot's automobile crossed the centerline and struck Franklin's vehicle, a 1986 Toyota Corolla. As a result of the accident, Franklin's auto was declared a total loss. State Farm's policy with Franklin, its insured, limits liability for comprehensive and collision coverages as follows: The limit of our liability for loss to property or any part of it is the lower of: 1. the actual cash value; or 2. the cost of repair or replacement. Actual cash value is determined by the market value, age and condition at the time the loss occurred. Any deductible amount that applies is then subtracted. State Farm's policy further provides that "the right of recovery of any party we pay

*

Marcus, J., not on panel. Rule IV, Part 2,

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