Hinkle v. National Cas. Ins. Co., No. 25626.
| Court | United States State Supreme Court of South Carolina |
| Citation | 354 S.C. 92,579 S.E.2d 616 |
| Docket Number | No. 25626. |
| Decision Date | 14 April 2003 |
| Parties | James R. HINKLE and Emily Hinkle, Respondents, v. NATIONAL CASUALTY INSURANCE COMPANY, Appellant. |
354 S.C. 92
579 S.E.2d 616
v.
NATIONAL CASUALTY INSURANCE COMPANY, Appellant
No. 25626.
Supreme Court of South Carolina.
Heard March 19, 2003.
Decided April 14, 2003.
Rehearing Denied May 15, 2003.
William P. Hatfield and Reginald C. Brown, Jr., both of Florence, for Respondents.
Justice PLEICONES.
Appellant (Insurance Company) appeals a jury verdict awarding the Hinkles (respondents) $1,500 actual damages and $280,000.01 punitive damages on their claim of negligent nonrenewal of a homeowner's insurance policy.1 Insurance Company argues it was entitled to a directed verdict or to a
FACTS
Respondents own a mobile home manufactured in 1980. They have financed improvements to the home by remortgaging it. In 1992, respondent Emily Hinkle (Emily) approached the Foster Insurance Agency about purchasing a homeowner's policy to cover the trailer. She told the agent the respondents needed flood coverage because the mobile home was located in a flood zone near a creek.2 The insurance application contains this notation in the agent's handwriting "Include VSI & Fed Flood."
The declaration page for the period 8/21/92 to 8/21/93 includes a $3 charge for `Flood' as an optional coverage. It is undisputed that, from the Insurance Company's perspective, this $3 optional flood coverage was meant only to protect the lender's interest in case the trailer was totally destroyed in a flood. The respondents believed they had flood coverage.
The policy was issued only after the agent responded to Insurance Company's request for more information, including verification that the mobile home was not in a flood area. Respondents supplied the agent with a copy of an appraisal done by the trailer's lien holder that indicated that the mobile home was not in a FEMA flood hazard area. The agent forwarded the appraisal to the Insurance Company. The agent testified she could submit any application whether or not it met Insurance Company's underwriting guidelines, but that it was Insurance Company's decision whether to bind the policy.
It is undisputed that had the Insurance Company known that the mobile home was, in fact, located in a flood zone,
The first policy period ran from August 1992 until August 1993. On January 19, 1993, the home was flooded, but not destroyed. The agent submitted the respondents' claim to the Insurance Company, which paid them approximately $7,290. This claim was paid despite the fact that, under the policy, the only flood coverage provided that the lender would be paid in full if the trailer were totally destroyed.
In March 1993, the Insurance Company sent a notice of nonrenewal to the respondents. This notice was triggered by the Insurance Company's erroneous attribution of a theft claim to the respondents' policy. The Insurance Company, virtually simultaneously, sent respondents a renewal notice. The Insurance Company honored the renewal notice, and the respondents purchased a second policy covering the period August 1993, to August 1994. They received a renewal notice and purchased a third policy for the period August 1994, to August 1995.
On December 23, 1994, during the third policy year, the respondents' mobile home was again flooded. This time, Insurance Company denied the claim on the ground that there was no coverage. The denial of this claim led to respondents suing Insurance Company for bad faith refusal to pay, a suit that resulted in a verdict for respondents.
Following this second flood loss, Insurance Company sent a timely notice of nonrenewal to respondents stating as the reason for the nonrenewal "loss frequency." The respondents testified they had a difficult time getting homeowner's insurance from another company, paid that company higher premiums for less coverage, and suffered emotional upset as the result of the loss of coverage. Since their home is located in a flood plain, respondents are unable to obtain private flood insurance and apparently have chosen not to participate in the federal flood program.
Whether the trial court erred in denying Insurance Company's motion for a directed verdict on the negligent nonrenewal claim?
ANALYSIS
When considering a directed verdict or a JNOV motion, the trial court is required to view the evidence and the inferences that can be drawn from that evidence in the light most favorable to the nonmoving party. Sabb v. South Carolina State Univ., 350 S.C. 416, 567 S.E.2d 231 (2002). This Court will reverse the trial court's rulings on these motions only where there is no evidence to support the rulings or where the rulings are controlled by an error of law. Id.
Respondents have styled their legal theory here as `negligent nonrenewal of a homeowner's insurance...
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Henson v. International Paper Co., No. 3745.
...from the evidence in a light most favorable to the party against whom the directed verdict was granted. Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003) ("When considering a directed verdict ... motion, the trial court is required to view the evidence and the infer......
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Ecclesiastes Prod. Ministries v. Outparcel, No. 4254.
...to the party opposing the motion. Hurd v. Williamsburg County, 363 S.C. 421, 611 S.E.2d 488 (2005); Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003); Huffines Co. v. Lockhart, 365 S.C. 178, 187, 617 S.E.2d 125, 129 (Ct.App.2005); Lingard v. Carolina By-Products, 36......
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The Huffines Co., LLC v. Lockhart, No. 3994.
...386, 520 S.E.2d 142, 148 (1999); accord Hurd v. Williamsburg County, 363 S.C. 421, 611 S.E.2d 488 (2005); Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003); Collins Entertainment, Inc. v. White, 363 S.C. 546, 611 S.E.2d 262 (Ct.App.2005); Lingard v. Carolina By-Prod......
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Parrish v. Allison, No. 4322.
...386, 520 S.E.2d 142, 148 (1999); accord Hurd v. Williamsburg County, 363 S.C. 421, 611 S.E.2d 488 (2005); Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003); Collins Entertainment, Inc. v. White, 363 S.C. 546, 611 S.E.2d 262 (Ct.App.2005); Lingard v. Carolina By-Prod......
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Henson v. International Paper Co., No. 3745.
...from the evidence in a light most favorable to the party against whom the directed verdict was granted. Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003) ("When considering a directed verdict ... motion, the trial court is required to view the evidence and the infer......
-
Ecclesiastes Prod. Ministries v. Outparcel, No. 4254.
...to the party opposing the motion. Hurd v. Williamsburg County, 363 S.C. 421, 611 S.E.2d 488 (2005); Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003); Huffines Co. v. Lockhart, 365 S.C. 178, 187, 617 S.E.2d 125, 129 (Ct.App.2005); Lingard v. Carolina By-Products, 36......
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The Huffines Co., LLC v. Lockhart, No. 3994.
...386, 520 S.E.2d 142, 148 (1999); accord Hurd v. Williamsburg County, 363 S.C. 421, 611 S.E.2d 488 (2005); Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003); Collins Entertainment, Inc. v. White, 363 S.C. 546, 611 S.E.2d 262 (Ct.App.2005); Lingard v. Carolina By-Prod......
-
Parrish v. Allison, No. 4322.
...386, 520 S.E.2d 142, 148 (1999); accord Hurd v. Williamsburg County, 363 S.C. 421, 611 S.E.2d 488 (2005); Hinkle v. Nat'l Cas. Ins. Co., 354 S.C. 92, 96, 579 S.E.2d 616, 618 (2003); Collins Entertainment, Inc. v. White, 363 S.C. 546, 611 S.E.2d 262 (Ct.App.2005); Lingard v. Carolina By-Prod......