Reed v. General Motors Corp.
United States Court of Appeals for the Fifth Circuit
773 F.2d 660 (1985)
David Reed (plaintiff) sued multiple parties, including drivers Boudreaux and Meche and their respective insurers (defendants), after a Louisiana car accident, and the federal trial judge, applying Louisiana law allowing evidence of inability to pay large awards, permitted Boudreaux to show his coverage was only $5,000 while also permitting Reed to introduce evidence that Meche's coverage was a full $500,000; the jury found Boudreaux 70% liable and Meche 30% liable, awarding Reed $450,000, with Louisiana law making Meche and his insurer fully liable for any amount Boudreaux couldn't pay. Meche and his insurer appealed, arguing the judge erred in admitting evidence of Meche's specific insurance coverage amount.
Whether evidence of a defendant's liability insurance coverage is inadmissible to prove liability, though admissible for other purposes.