Vann v. Nationwide Ins. Co.
| Decision Date | 29 November 1971 |
| Docket Number | No. 19323,19323 |
| Court | South Carolina Supreme Court |
| Parties | Robert VANN, Appellant, v. NATIONWIDE INSURANCE COMPANY, Respondent. |
James M. Herring, of Saleeby, Saleeby & Herring, Hartsville, for appellant.
Paulling & James and Melvin Hyman, Darlington, for respondent.
Robert Vann, the appellant herein, brought this action against Nationwide Insurance Company, the respondent herein, to recover actual and punitive damages resulting from the alleged breach of an insurance contract accomplished with a fraudulent intention and accompanied by fraudulent acts.
The appeal her is from an order granting a motion of the responent to strike all allegations of the complaint appropriate to the recovery of punitive damages, upon the ground that the facts stated do not warrant the recovery of such damages.
The appellant alleges in his complaint that the respondent issued to one James Edward Farmer an automobile liability insurance policy containing a medical payments clause and uninsured motorist coverage. The appellant alleges, while driving the insured motor vehicle, with the permission of the owner thereof, he was in a collision with another vehicle owned by one Mae Wallace and such automobile was uninsured. He further alleges that as a result of the injuries sustained in said collision he incurred medical expenses which he was entitled to collect under the said liability policy. He then alleges that the respondent has refused to pay the medical expenses 'unless and until he also compromises his uninsured motorist claim against the said Mae Wallace, which is now pending under a separate provision of this insurance contract.'
The appellant then alleges that the respondent breached its contract of liability insurance in refusing to pay his liquidated claim for medical expenses unless he agreed 'to waive a substantial right not made a condition precedent to settlement of benefits under medical pay coverage, in that the defendant represented to plaintiff that both claims must be considered together and thus attempted to minimize the benefits due plaintiff and that the defendant engaged in a fraudulent scheme or plan to cheat and defraud the plaintiff of his rights due under the various provisions of said policy.'
The question for decision here is whether the trial judge erred in granting the motion of the respondent to strike the allegations of the complaint alleging fraud and seeking punitive damages.
We have held in numerous cases that in an action for breach of an insurance contract allegation and proof of fraudulent intent accompanied by a fraudulent act is necessary to support a verdict for punitive damages. Blackmon v. United Insurance Company, 235 S.C. 335, 111 S.E.2d 552 and Corley v. Coastal States Ins. Co., 244 S.C. 1, 135 S.E.2d 316.
In Hardee v. Penn Mut. Life Ins. Co. of Phila., 215 S.C. 1, 53 S.E.2d 861, this court said:
We have also held that a mere violation of a contract will not support an allegation of fraud. Calder v....
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