 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
State Farm Fire and Casualty Co. v. Owen3/12/1999
t State Farm had superior knowledge of its methods of computing premiums and obtaining replacement items. But in practically any transaction, particularly those involving specialized areas like insurance, one party will have greater knowledge than the other. While that factor should be important, it should not be dispositive. "Superior knowledge of a fact, without more, does not impose upon a party a legal duty to disclose such information." Surrett v. TIG Premier Ins. Co., 869 F.Supp. 919, 925 (M.D. Ala. 1994). Rather, State Farm's superior knowledge as to its procedures and practices should be balanced with other considerations. One of those other considerations is the other party's opportunity to ascertain the fact. There was no evidence that Owen inquired into State Farm's ratemaking procedures or its replacement services. Indeed, she could not recall having read her application and apparently did not read her policy until litigation began. In the absence of an inquiry, we cannot say that she had no opportunity to learn about how her premium would be computed.
Most important, Owen's application clearly stated that in the event of a loss State Farm had the option to repair or to replace Owen's ring and that it would pay no more than its replacement cost. Even though State Farm required the applicant to submit either a bill of sale or an appraisal form, the application never used the words "appraisal value." We find the language of the application to be clear and to be sufficient to alert Owen that in the event of a loss her options under the policy would be limited to receiving a replacement item or receiving its replacement cost, and that State Farm would not consider the appraisal value. State Farm should not be held responsible for Owen's confusion, when the contract language was clear. Considering these factors, we conclude that Owen did not produce sufficient evidence to support a finding of "special circumstances" justifying the imposition of a duty of disclosure.
To uphold Owen's claim, we would have to rule that it is the responsibility of every insurer at the point of sale to explain fully to potential customers the insurer's internal procedures, its ratemaking process, and its business practices. To impose that responsibility strikes us as highly impractical, and it is a responsibility we have not imposed in the past. Ex parte Ford Motor Credit Co., [Ms. 1960517, November 7, 1997] So.2d (Ala. 1997); Hardy, supra; King, supra. Furthermore, requiring such an explanation could subject an insurer to double liability by encouraging persons to underinsure their interests. Therefore, we conclude that Owen did not demonstrate any special circumstances on which a court could hold that State Farm was obligated to explain to her its internal practices and procedures.
As a matter of law, State Farm owed Owen no duty of disclosure. Finding that the basic element of fraudulent suppression did not exist, we need not consider the remaining elements of Owen's claim or address the damages issues that State Farm presents. We therefore reverse the trial court's judgment for the plaintiff Owen and render a judgment for the defendant State Farm.
REVERSED AND JUDGMENT RENDERED.
Maddox, Houston, See, and Lyons, JJ., concur.
Shores, J., concurs in the result.
Almon, J., Dissents.
SHORES, Justice (concurring in the result).
The majority holds that whether a duty to disclose a material fact exists in a fraudulent suppression case is a question of law that is always to be decided by the court, subject to the jury's determination of the disputed underlying facts of the case. I agree that the jury's role encompasse
Page 1 2 3 4 5 6 7 8 9 10 11 Alabama Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|