West v. Service Life & Health Ins. Co.

• Citation: 66 S.E.2d 816,220 S.C. 198
• Decision Date: 25 September 1951
• Docket Number: No. 16545,16545
• Court: United States State Supreme Court of South Carolina
• Parties: WEST v. SERVICE LIFE & HEALTH INS. CO.

Page 816

66 S.E.2d 816

220 S.C. 198

WEST v. SERVICE LIFE & HEALTH INS. CO.

No. 16545.

Supreme Court of South Carolina.

Sept. 25, 1951.

Harris & Harris and Watkins & Watkins, all of Anderson, for appellant.

W. Harper Welborn, Anderson, for respondent.

TAYLOR, Justice.

This action was commenced in the Court of Common Pleas for Anderson County for actual and punitive damages arising out of the alleged fraudulent breach of a contract of insurance.

The testimony shows that appellant had issued its policy of insurance upon the life and health of respondent which set forth certain payments in the event of hospitalization and provided that, if such hospitalization occurred within the first six months pf the life of the policy, the insured was to receive one-half of the amount set forth in the policy; that upon August 1, 1949, which was within the six months period, respondent was admitted to the Anderson County Hospital, where she remained for twenty-three days, for which under the terms of the policy she was entitled to $2.50 per day and $20.00 for surgery, making a total of $77.50. On September 8, 1949, respondent returned to her home from the hospital, having assigned to the hospital her interest in the insurance policy. The testimony further shows that appellant's agents would from time to time adjust such claims as were presented by making payments from the amounts of money collected on their routes to claimants and in turn present their receipts at the office where they would be reimbursed for such amounts as had been paid out. Appellant's agent who last collected the premiums on this policy presented to appellant a receipt purported to have been signed by respondent dated September 9, 1949, for the sum of $87.50, and thereafter on September 16, 1949, presented another receipt purportedly signed by respondent for the sum of $38.50, both amounts being paid to the agent. There is no record of anything further being done by either party until eight or ten months later when another agent for claimant called upon respondent, soliciting business, and was told that she had not been paid what was due her under the policy which she previously had with this company. The agent thereupon instituted an investigation and found that the receipts purportedly signed by respondent were filed in the Home Office and that there was outstanding at the Anderson County Hospital a bill against the respondent for the sum of $259.15, which had attached thereto respondent's assignment of the insurance policy herein referred to. In the meantime appellant's agent, who, prior to and at the time of respondent's hospitalization, was collecting insurance premiums weekly, ceased calling for the premiums and respondent testified that she had not seen him since returning from the hospital.

At the conclusion of all the testimony, appellant's counsel made a motion for a directed verdict in favor of the plaintiff for $77.50 with interest and costs, which was granted, and moved further for a directed verdict in favor of the appellant as to punitive damages. The latter motion by appellant was denied and the question submitted to the jury who found for respondent in the sum of $77.50 actual damages, as ordered by the court, and $490.00 punitive damages, from which appellant moved for judgment non obstante veredicto as to punitive damages or for a new trial in the alternative. This motion was also refused.

Appellant now comes to this Court upon a number of exceptions which counsel stated in oral argument present the one question of whether or not the court committed error in refusing appellant's motion for judgment non obstante veredicto as to punitive...