Foremost Insurance Company v. Charles Pendleton

675 F. App'x 457
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 13, 2017
Docket16-60240 Summary Calendar
StatusUnpublished

This text of 675 F. App'x 457 (Foremost Insurance Company v. Charles Pendleton) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foremost Insurance Company v. Charles Pendleton, 675 F. App'x 457 (5th Cir. 2017).

Opinion

PER CURIAM: *

Defendant-Appellant Charles Pendleton filed an insurance claim with Plaintiff-Ap-pellee Foremost Insurance Company (“Foremost”) after his 1956 Mercedes-Benz was destroyed. Contending that the car was not destroyed by accident, Foremost refused to pay out Pendleton’s policy and filed for declaratory relief. Following a trial, the jury found in favor of Foremost. Pendleton appeals the jury’s verdict. We AFFIRM.

I. BACKGROUND & PROCEDURAL HISTORY

Pendleton is an antique vehicle collector. After purchasing a 1956 190SL Mercedes-Benz convertible on January 3, 2014, 1 he *459 had the car insured through Foremost on January 14, 2014. The purchased policy explained in pertinent part that “[Foremost does] not provide coverage for any ‘insured’ who has made fraudulent statements or engaged in fraudulent conduct in connection with any accident or loss for which coverage is sought under this policy.” On January 28, 2014, the car was destroyed in a collision and subsequent fire. Pendleton and Foremost dispute whether the car’s destruction was deliberate or accidental.

According to Pendleton, on the day of the incident, he and an acquaintance, George Reed, met at Pendleton’s home in Vicksburg, Mississippi to drive to Edwards, Mississippi—approximately twenty miles away 2 —to go to a hardware store. Despite a recent snow and icy road conditions, Pendleton and Reed took back roads instead of the interstate. En route to the hardware store, Reed, who was following Pendleton in a Ford F-250, allegedly hit the back of Pendleton’s Mercedes when the truck slipped on an ice patch. Pendle-ton claims that the impact caused the Mercedes to collide with a tree. Approximately ten minutes later, the Mercedes caught fire and was completely destroyed.

Deputy Arthur Turner arrived on the scene sometime after the fire subsided. Contrary to Pendleton’s assertions, Deputy Turner noted that the damage on the backend of the Mercedes was not consistent with the damage to the front of the F-250, nor was the damage to either vehicle consistent with a rear-end collision. He also found that there was no paint transfer between the two vehicles. Because of this, Deputy Turner concluded that there had been “no impact at all.” Finally, when Deputy Turner interviewed Reed at the scene, he denied having any prior relationship with Pendleton. After Deputy Turner ran the F-250’s plates, however, he discovered that the truck was registered to Pendleton.

The next day, Pendleton reported a complete loss to Foremost, seeking full coverage under the policy. Following an investigation, Foremost denied Pendleton’s claim, determining that the car’s destruction was not accidental. Accordingly, Foremost brought the instant matter before the U.S. District Court for the Southern District of Mississippi seeking a declaratory judgment that it was not obligated to pay Pendleton’s claim. Pendleton counterclaimed, seeking $185,000 pursuant to the policy. After several months of discovery, the case proceeded to trial.

At trial, Michael Miller testified as a forensic fire investigator. Miller explained that the fire originated somewhere .near the Mercedes’s front passenger seat. He then explained that there was not a potential ignition source in that area of the car. Thereafter, Kevin Brown testified as an expert mechanic and accident reeonstruc-tionist. He explained that the damage to the Mercedes was “consistent with a relatively minor impact with a push as opposed to a 35-mile-an-our [sic] impact.” Brown also testified that, contrary to Pendleton’s assertions, the Mercedes was in extremely poor condition. Based on photographs of the car’s engine, Brown concluded that even before the accident occurred, the car *460 would not have been able to start, and even if it could start, the brakes would not have worked.

Over Pendleton’s objection, Foremost admitted evidence of Pendleton’s past insurance claims. The district court deemed this evidence admissible under Federal Rule of Evidence 404(b), as the evidence showed Pendleton’s “modus operandi.” In so ruling, the district court found that “in the relatively recent past, Mr. Pendleton and his associates have been involved in similar accidents surrounded by similar circumstances regarding insurance, which is obviously relevant to the defendant’s defense in this case.”

At the trial’s close, the jury returned a special verdict, finding that Foremost proved “by clear and convincing evidence that ... Pendleton intentionally destroyed or procured the intentional destruction of the insured 1956 Mercedes.”

II. DISCUSSION

On appeal, Pendleton raises two assignments of error. First, he contends that because Foremost did not present any evidence of incendiary origin and motive, two of civil arson’s essential elements, the jury’s verdict must be set aside. Second, Pendleton contends that the district court’s admitting evidence of his past insurance claims was unduly prejudicial, requiring this court to vacate and remand his case for retrial. We address each issue in turn.

A.

Pendleton argues, citing McGory v. Allstate Ins. Co., 527 So.2d 632, 636 (Miss. 1988), that for the jury to find in favor of Foremost, it must have found by clear and convincing evidence that: Pendleton (1) had the opportunity to set (2) an incendiary fire and (3) had motive to do so. He concedes that the first element is met, but contends that Foremost presented no evidence of the other two elements. Foremost counters that the jury was not required to find that the car was destroyed by an intentionally set fire, but rather that Pendleton deliberately destroyed the car. Because the jury found that Pendle-ton “intentionally destroyed or procured the intentional destruction of the [Mercedes],” we agree with Foremost. Thus, we now evaluate whether there was sufficient evidence for a rational jury to find that Pendleton purposefully destroyed the Mercedes, thereby precluding him from collecting on his insurance policy.

We review the district court’s denial of a motion for judgment as a matter of law de novo. Foradori v. Harris, 523 F.3d 477, 485 (5th Cir. 2008). A Rule 50 motion in a case tried by a jury, however, “is a challenge to the legal sufficiency of the evidence supporting the jury’s verdict.” Hiltgen v. Sumrall, 47 F.3d 695, 699 (5th Cir. 1995). Our review of a jury’s verdict is “especially deferential.” Flowers v. S. Reg’l Physician Servs. Inc., 247 F.3d 229, 235 (5th Cir. 2001). Accordingly, “[a] jury verdict must be upheld unless there is no legally sufficient evidentiary basis for a reasonable jury to find as the jury did.” Heck v. Triche, 775 F.3d 265, 273 (5th Cir. 2014).

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Related

Hiltgen v. Sumrall
47 F.3d 695 (Fifth Circuit, 1995)
Foradori v. Harris
523 F.3d 477 (Fifth Circuit, 2008)
LYONDELL CHEMICAL CO. v. Occidental Chemical Corp.
608 F.3d 284 (Fifth Circuit, 2010)
McGory v. Allstate Ins. Co.
527 So. 2d 632 (Mississippi Supreme Court, 1988)
Raymond Heck v. Kenneth Buhler
775 F.3d 265 (Fifth Circuit, 2014)
James v. State
124 So. 3d 693 (Court of Appeals of Mississippi, 2013)
Heflin v. Merrill
154 So. 3d 887 (Court of Appeals of Mississippi, 2013)

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675 F. App'x 457, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foremost-insurance-company-v-charles-pendleton-ca5-2017.