Taylor v. Southern Farm Bureau Cas. Co.
| Docket Number: | 2005-CA-02215-COA | |
| Court of Appeals: |
Opinion Link Opinion Date: 04-03-2007 Opinion Author: MYERS, P.J. Holding: Affirmed |
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| Additional Case Information: |
Topic: Contract - Duty of good faith and fair dealing - Fiduciary relationship - Fraud Judge(s) Concurring: King, C.J., Lee, P.J., Irving, Chandler, Griffis, Barnes, Ishee, Roberts and Carlton, JJ. Procedural History: Dismissal Nature of the Case: CIVIL - BREACH OF CONTRACT/INSURANCE |
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| Trial Court: |
Date of Trial Judgment: 11-03-2005 Appealed from: TUNICA COUNTY CIRCUIT COURT Judge: Kenneth L. Thomas Disposition: GRANTED APPELLEES’ MOTIONS TO DISMISS Case Number: 2004-0095KT |
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| Party Name: | Attorney Name: | |||
| Appellant: | JENNIFER D. ROLLINS TAYLOR |
JOSEPH R. DULANEY |
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| Appellee: | SOUTHERN FARM BUREAU CASUALTY COMPANY AND CCC INFORMATION SERVICES, INC. | ARNOLD U. LUCIANO, GERALD H. JACKS, J. WALKER SIMS, TIMOTHY B. HARDWICKE |
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Synopsis provided by:  If you are interested in subscribing to the weekly synopses of all Mississippi Supreme Court and Court of Appeals hand downs please contact Tammy Upton in the MLI Press office. |
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| Topic: | Contract - Duty of good faith and fair dealing - Fiduciary relationship - Fraud |
| Summary of the Facts: | After being involved in an automobile accident, Jennifer Taylor filed an insurance claim with her insurer, Southern Farm Bureau Casualty Insurance Company, for the damage to her vehicle. Farm Bureau declared Taylor’s vehicle a “total loss” and tendered Taylor a check in the amount of $8,321.25. Taylor accepted the amount offered by Farm Bureau, but filed suit against both Farm Bureau and CCC Information Services, Inc., which had prepared the valuation of the vehicle. CCCIS and Farm Bureau filed joint and separate motions to dismiss which the court granted. Taylor appeals. |
| Summary of Opinion Analysis: | Taylor argues that CCCIS offered its services to Farm Bureau under the promise of lowering Farm Bureau’s “total loss” claims payout; therefore, the valuations provided by CCCIS are biased to result in lower “total loss” claim payouts by Farm Bureau. Taylor’s complaint alleges breach of contract against Farm Bureau under the theory that Farm Bureau’s contract with CCCIS for the latter to perform automobile valuations on total loss claims was a material fact which Farm Bureau had a duty to disclose. Farm Bureau’s alleged violation of its duty of good faith and fair dealing necessarily rests on the failure to disclose its valuation practices at the time of contract formation. In Mississippi, the duty to disclose material facts only arises where there is a fiduciary relationship between the parties. The purchase of insurance is deemed to be an arms length transaction, and accordingly no fiduciary duty arises. Taylor’s complaint also alleges statutory fraud by omission against Farm Bureau under the Mississippi Consumer Protection Act. However, the automobile insurance policy at issue here is not “merchandise” subject to the provisions of the MCPA. Taylor also alleges that Farm Bureau had a fiduciary duty to disclose the nature of its business relationship with CCCIS, and that the failure to do so, when Farm Bureau had knowledge that CCCIS was using deflated valuation reports, was an overt act in furtherance of a common scheme to defraud. In Mississippi, a claim of fraud by omission arises only where the defendant had a duty to disclose material facts purportedly omitted. This duty generally arises only where there is a fiduciary relationship between the parties. Because the purchase of insurance is deemed to be an arms length transaction, no fiduciary duty arises. Taylor claim that CCCIS engaged in a conspiracy to commit common law fraud with Farm Bureau through the use of deflated “total” loss valuations fails for the same reason. |
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