Archie v. State Farm Fire & Cas. Co.

• Decision Date: 10 August 1992
• Docket Number: Civ. A. No. J91-0722(W)(N).
• Court: U.S. District Court — Southern District of Mississippi
• Parties: Amos ARCHIE, Jr. v. STATE FARM FIRE & CASUALTY COMPANY.

813 F. Supp. 1208

Amos ARCHIE, Jr. v. STATE FARM FIRE & CASUALTY COMPANY.

Civ. A. No. J91-0722(W)(N).

United States District Court, S.D. Mississippi, Jackson Division.

August 10, 1992.

Dennis Sweet, Jackson, MS, for plaintiff.

William C. Brabec, Jackson, MS, for defendant.

MEMORANDUM OPINION AND ORDER

WINGATE, District Judge.

Before the Court in this diversity lawsuit filed pursuant to Title 28, United States Code, § 1332(a)¹, is the motion of the defendant, State Farm Fire & Casualty Company hereinafter State Farm, for summary judgment under rule 56(c)² of the Federal Rules of Civil Procedure. State Farm avers that under the undisputed facts of this case it is now entitled to a judgment in its favor because the plaintiff, its insured, after suffering a burglary and after making a claim on his homeowner's policy, refused to abide by a material provision of the homeowner's policy obligating the insured to submit to an examination under oath, a necessary prerequisite to recovery under the State Farm policy. State Farm has attached to its motion affidavits and documentary evidence which purport to establish that State Farm duly requested the examination under oath, but that even to this day, some seventeen months after State Farm's request under the policy, plaintiff still has not submitted to the examination. The plaintiff, Amos Archie, Jr., opposes the motion. Nevertheless, guided by clear facts and the law³, the Court is persuaded to grant the defendant's motion.

BACKGROUND

On or about September 13, 1990, defendant State Farm issued plaintiff, Amos Archie, a homeowners policy of insurance covering, in part, any losses which plaintiff might sustain to his dwelling and its contents. Among other provisions, the homeowner's policy contained clauses which, in the event of a loss, the insured was required to furnish an inventory of the stolen personal property and, upon request to furnish other records and documents and to submit to an examination under oath. A few months after the issuance of the policy, on or about December 10, 1990, plaintiff reported to State Farm that his home had been burglarized and that several items of personal property had been stolen. On or about December 12, 1990, pursuant to the instructions of State Farm representative, Wes Shelton, plaintiff provided the defendant with an itemized personal property inventory sheet which reflected a total loss of $17,199.72. Thereafter, on or about December 17, 1990, State Farm sent a letter to Mr. Archie and his wife informing plaintiff of his duties as an insured under the insurance contract. The letter stated in part:

Your duty as an insured after a loss are the following: ... (c) as often as we require: ... 2. submit to examinations under oath and subscribe the same; ...

See Exhibit A to defendant's motion for summary judgment. Defendant State Farm says that the letter was mailed to plaintiff because plaintiff failed to provide defendant with invoices and other documents showing plaintiff's ownership of the stolen property. See Affidavit of Wes Shelton, representative for State Farm.

On or about January 7, 1991, plaintiff retained private counsel to assist him in the processing of the insurance claim. By letter dated February 15, 1991, State Farm informed plaintiff's counsel that plaintiff was required under the insurance policy to substantiate his ownership of the claimed stolen property with proper documentation. In the letter, the defendant agreed to pay actual cash value for items which plaintiff had provided ownership documentation; however, the defendant rejected plaintiff's claim for the remaining personal assets by stating, "... since the policy requirements have not been met, we must respectfully reject the Proof of Loss as it presently exists." The letter then advised the plaintiff that State Farm wanted to schedule a deposition at an appropriate time of Mr. and Mrs. Archie on matters pertaining to the insurance claim. See Exhibit B to defendant's motion for summary judgment. According to State Farm, on or about February 27, 1991, plaintiff's counsel by letter responded to the defendant's requests for a deposition. In the letter, says the defendant, speaking on his client's behalf, plaintiff's counsel refused to submit further documentation and refused to attend an examination under oath. On or about March 21, 1991, State Farm once again mailed plaintiff's attorney a letter which set forth the insured's contractual requirement to submit to an examination under oath. See Exhibit C to defendant's motion for summary judgment. Eight months later, still not having consented to an oral examination, plaintiff then filed suit in the Circuit Court of the First Judicial District of Hinds County against his insurer for bad-faith denial of insurance benefits. Defendant, a non-resident of the State of Mississippi, filed a removal to this Court pursuant to Title 28, United States Code, 1332(a) and 1441⁴, and now seeks summary judgment based on plaintiff's steadfast resistance to an oral examination under oath.

THE LAW ON SUMMARY JUDGMENT

Defendant, State Farm, moves for summary judgment pursuant to Rule 56(c) of the Federal Rules of Civil Procedure. A party seeking summary judgment always bears "the initial responsibility of informing the district court of the basis for its motion, and identifying those portions of the `pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any,' which it believes demonstrate the absence of a genuine issue of material fact." Celotex Corp. v. Catrett, 477 U.S. 317, 323, 106 S.Ct. 2548, 2553, 91 L.Ed.2d 265 (1986). In the case of Little v. Liquid Air Corp., 952 F.2d 841, 847 (5th Cir.1992), the Fifth Circuit discussed the movant's burden under Rule 56 and stated:

To satisfy the movant's burden, he may either (1) submit evidentiary documents that negate the existence of some material element of the opponent's claim or defense, or (2) if the crucial issue is one on which the opponent will bear the ultimate burden of proof at trial, demonstrate that the evidence in the record insufficiently supports an essential element of the opponent's claim or defense.

This initial burden remains with State Farm as the moving party even though the issues involved are ones on which the plaintiff, the non-movant, will bear the burden of proof at trial. Russ v. International Paper Co., 943 F.2d 589, 592 (5th Cir.1991), cert. denied, ___ U.S. ___, 112 S.Ct. 1675, 118 L.Ed.2d 393 (1992). Once the moving party has met its burden pursuant to Rule 56(c), the non-moving party is required to respond with proof of a prima facie case sufficient for a "fair-minded jury" to enter a verdict in his favor. International Shortshop, Inc. v. Rally's, Inc., 939 F.2d 1257, 1263 (5th Cir.1991), cert. denied, ___ U.S. ___, 112 S.Ct. 936, 117 L.Ed.2d 107 (1992); Washington v. Armstrong World Industries, Inc., 839 F.2d 1121, 1122-23 (5th Cir.1988) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986)). The opposing party must present more than a metaphysical doubt about the material facts in order to preclude the grant of summary judgment. Matsushita Electric Industrial Co., Ltd. v. Zenith Radio Corp., 475 U.S. 574, 106 S.Ct. 1348, 89 L.Ed.2d 538 (1986). So, Archie can meet his burden by tendering affidavits, depositions, and other materials which provide significant probative evidence demonstrating the existence of a triable issue of fact. Resolution Trust Corp. v. Murray, 935 F.2d 89, 92 (5th Cir.1991). If the party opposing the summary judgment motion fails to meet his burden, the court may enter summary judgment for the movant. Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 250, 106 S.Ct. 2505, 2511, 91 L.Ed.2d 202 (1986). However, the court must be mindful that in reviewing a summary judgment motion, all inferences should be drawn in the light most favorable to Archie, the non-moving party.

COURT'S HOLDING

Plaintiff's homeowner insurance policy with State Farm provides in pertinent part:

2. Your duties after loss. After a loss to which this insurance may apply, you shall see that the following duties are performed.

* * * * * *

(c) Prepare an inventory of damaged or stolen personal property. Show in detail the quantity, description, actual cash value and amount of loss. Attach to the inventory all bills, receipts and related documents that substantiate the figures in the inventory;

(d) As often as we reasonably require:

2. Provide us with records and documents we request and permit us to make copies;

3. Submit to and subscribe, while not in the presence of any other insured:

(a) statement; and

(b) examinations under oath.

See Exhibit A attached to the plaintiff's complaint.

Mississippi courts, federal and state, have found that clauses within insurance policies requiring an insured's examination under oath are valid and reasonable. See, e.g., Gates v. State Farm General Insurance Co., 740 F.Supp. 1237, 1241 (S.D.Miss.1990); Allison v. State Farm Fire and Casualty Co., 543 So.2d 661, 663 (Miss.1989). Insurance policy clauses mandating oral examinations have been upheld in Mississippi based on the rationale that insurance companies have the right to "possess themselves of all knowledge, and all information as to other sources and means of knowledge, in regard to the facts, material to their rights, to enable them to decide upon their obligations, and to protect them against false claims." Standard Insurance Co. of New York v. Anderson, 227 Miss. 397, 86 So.2d 298, 301 (Miss.1956) (citing Claflin v. Commonwealth Insurance Co., 110 U.S. 81, 85, 3 S.Ct. 507, 513, 28 L.Ed. 76 (1883)). A consequence of this well-established and well-ingrained policy is that an insured's refusal to submit to an examination under oath in violation of the express provisions of the insurance policy renders the policy void. See Saucier v. United States Fidelity and Guaranty Co.,...