Gordon v. Nat. States Ins. Co., et al.
Docket Number: | 2002-CA-00456-SCT Linked Case(s): 2002-CA-00456-SCT |
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Supreme Court: | Opinion Link Opinion Date: 06-05-2003 Opinion Author: Graves, J. Holding: Affirmed |
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Additional Case Information: |
Topic: Insurance - Punitive damages Judge(s) Concurring: Pittman, C.J., Smith, P.J., Waller, Cobb, Diaz and Carlson, JJ. Non Participating Judge(s): McRae, P.J. Concurs in Result Only: Easley, J. Procedural History: Summary Judgment Nature of the Case: CIVIL - INSURANCE |
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Trial Court: |
Date of Trial Judgment: 04-11-2002 Appealed from: Winston County Circuit Court Judge: Clarence E. Morgan, III Disposition: Granted the Appellee's motion for summary judgment. Case Number: 99-0043-CVM |
Party Name: | Attorney Name: | |||
Appellant: | Don E. Gordon |
DAVID MICHAEL BRISOLARA |
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Appellee: | National States Insurance Company and Bernard VanLandingham | G. TODD BURWELL J. NILES McNEEL |
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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. |
Topic: | Insurance - Punitive damages |
Summary of the Facts: | Arvel Sullivan and his wife Pauline Sullivan purchased two life insurance policies valued at $6,000 each from Bernard VanLandingham, an agent of National States Insurance Company. When Arvel died, National denied Pauline’s claim and rescinded the policy when it discovered that Arvel had been treated for congestive heart failure within the two-year period prior to his application for insurance. Pauline contacted National and asserted that Arvel had disclosed his heart condition to VanLandingham who stated that Arvel’s condition did not need to be reported unless Arvel suffered a heart attack. When National received a demand letter threatening litigation from Pauline’s attorney, National reconsidered its position and decided to pay Pauline’s claim. National subsequently received another letter requesting an additional payment of $10,000 for consequential damages. National refused to pay, and Pauline filed an action against National and VanLandingham. The court granted summary judgment in favor of both National and VanLandingham. Pauline appeals. |
Summary of Opinion Analysis: | Pauline argues that the agency relationship between VanLandingham and National warrants a conclusion that National had knowledge of the facts given to its agent and was liable for payment on the policy immediately and that by initially denying payment, National is liable for an independent tort. Where there is a legitimate or arguable reason for denial of payment under an insurance policy, there is no valid claim for punitive damages. National’s initial denial of payment was justifiably based. Arvel’s medical records showed that he had been treated for congestive heart failure within two years of his application to National and that the agent denied Pauline’s allegation in writing. National then paid the claim in full within eight days of receiving a demand letter from Pauline’s attorney. |
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