George Jones, Cross-Appellant v. Benefit Trust Life Insurance Company, Cross-Appellee

800 F.2d 1397, 21 Fed. R. Serv. 1054, 1986 U.S. App. LEXIS 31439
CourtCourt of Appeals for the Fifth Circuit
DecidedOctober 1, 1986
Docket85-4853
StatusPublished
Cited by35 cases

This text of 800 F.2d 1397 (George Jones, Cross-Appellant v. Benefit Trust Life Insurance Company, Cross-Appellee) 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
George Jones, Cross-Appellant v. Benefit Trust Life Insurance Company, Cross-Appellee, 800 F.2d 1397, 21 Fed. R. Serv. 1054, 1986 U.S. App. LEXIS 31439 (5th Cir. 1986).

Opinion

PER CURIAM:

Following a jury verdict for the plaintiff, the defendant filed a motion for remittitur; a motion for judgment n.o.v. or, alternatively, a new trial; and a motion to alter or amend the judgment. The plaintiff filed a motion to amend its prayer for relief to conform to the evidence and the jury verdict. The district court granted in part the defendant’s motion for judgment n.o.v.; it denied the remainder of the defendant’s motions; and it held that the plaintiff's motion was moot. 617 F.Supp. 1542 (S.D.Miss.1985). The defendant appeals and the plaintiff cross-appeals. We affirm in part, vacate in part and remand.

I.

George Jones worked as a laborer, machinery operator and millwright at Mississippi Chemical Corp. (Mississippi Chemical) in Pascagoula, Mississippi. After working there for some fifteen years, Jones developed glaucoma, became blind, and was unable to work any longer. He began receiving Social Security benefits shortly thereafter, as did his wife and three children. Jones received $311.10 per month, and his wife and children each received $66.10 per month.

Mississippi Chemical had contracted with Benefit Trust Life Insurance Company (Benefit Trust) for a group long-term disability contract for its employees. Jones applied for benefits under this policy. The monthly benefit to which Jones would have been entitled was $600.17, but this amount *1399 was reduced by the total Social Security award being received by Jones, his wife, and his children (i.e., a total of $575.50 per month). Jones therefore received a monthly payment from Benefit Trust of $24.67.

In 1982, Benefit Trust learned that Jones had also been receiving Veterans’ Administration disability benefits, so Benefit Trust wrote Jones advising him that there had been an overpayment under the long-term disability policy, and requesting that Jones refund to Benefit Trust $1,241.68. Jones brought suit alleging tortious breach of contract and seeking actual and punitive damages.

The district court granted Jones’ motion for summary judgment concerning Jones’ claim that, as a matter of law, Benefit Trust was not entitled to deduct from the amount due to Jones under the long-term disability policy the Social Security benefits being paid to Jones’ wife and children. Jones v. Benefit Trust Insurance Co., 605 F.Supp. 179 (S.D.Miss.1985) (Jones I). An agreed order was entered establishing that Benefit Trust had erroneously deducted $7,300 from the amount due to Jones under Benefit Trust’s policy with Mississippi Chemical. The agreed order awarded this sum as contract damages, plus $4,705 prejudgment interest, to Jones.

A trial concerning damages for injury resulting from tortious breach of contract was then conducted before a jury. The jury awarded Jones $50,000 in actual damages and $40,000 in punitive damages. Benefit Trust filed a motion for a remit-titur and a motion for judgment n.o.v. or, alternatively, a new trial. Benefit Trust also filed a motion to alter or amend, alleging that because Jones’ recovery for actual damages exceeded the ad damnum clause in the complaint, the verdict for actual damages should be reduced to the amount actually sued for. Jones therefore filed a motion to amend his prayer for relief to conform to the evidence and the jury’s verdict.

The district court ruled that under Boeing Co. v. Shipman, 411 F.2d 365 (5th Cir.1969) (en banc), the evidence was sufficient to support the jury’s verdict for punitive damages. However, the district court granted in part Benefit Trust’s motion for judgment n.o.v., holding that the evidence did not support an award of damages for emotional distress. The court denied the remainder of Benefit Trust’s motions and found Jones’ motion to alter his pleadings to be moot. Jones v. Benefit Trust Life Insurance Co., 617 F.Supp. 1542 (S.D.Miss. 1985) (Jones II).

Benefit Trust appeals, arguing that the district court erred in submitting the issue of punitive damages to the jury without first determining whether Benefit Trust had an arguable reason under its policy with Mississippi Chemical for acting as it had. Benefit Trust asserts “that Boeing v. Shipman should not have been deemed controlling by the lower court in this case” because, according to Benefit Trust, the district court should have initially determined whether, under Mississippi substantive law, the punitive damages issue should even have gone to the jury. In addition, Benefit Trust raises several evidentiary issues, arguing that the district court erred: (1) in keeping Benefit Trust from informing the jury that the district court had initially denied Jones’ motion for summary judgment on the issue of how much money was due under the disability contract before later reversing that ruling and granting Jones’ motion; (2) in disallowing the introduction into evidence of a booklet prepared by Mississippi Chemical which summarized the terms of the group long-term policy and in denying Benefit Trust’s request to introduce a memo in Mississippi Chemical’s file; and (3) by admitting into evidence another insurance policy issued by Benefit Trust to a different company.

Jones has cross-appealed, arguing that the district court erred in granting Benefit Trust’s motion for judgment n.o.v. as to the emotional distress damages in that Benefit Trust did not move for a directed verdict on this issue. In any event, Jones contends, the evidence was sufficient to support a finding of emotional distress injury. In addition, Jones argues that the district *1400 court erred in failing to grant its motion to amend the prayer for relief.

II.

Under Mississippi substantive law, a plaintiff who brings suit against an insurance company for the company’s failure to pay under a policy may have the issue of punitive damages go to the jury only if the insurance company did not have a “reasonably arguable basis” for denying the claim. Blue Cross & Blue Shield of Mississippi, Inc. v. Campbell, 466 So.2d 833, 842 (Miss.1985). Benefit Trust argues that the district court should have followed Campbell and determined for itself whether the insurance company had a reasonably arguable basis for acting as it did.

Benefit Trust does not argue that the evidence before the jury was insufficient to support a punitive damages award, only that the court should have kept the issue from the jury. However, the relationship between the judge and jury in a federal civil proceeding is a matter of federal, not state, law. Plantation Key Developers, Inc. v. Colonial Mortgage Co. of Indiana, Inc., 589 F.2d 164, 171 (5th Cir.1979). The standard in this circuit for determining whether the evidence is sufficient to create a jury question is the familiar one set out in Boeing, and the standard does not change because the case is in federal court on the basis of diversity jurisdiction. Louis Dreyfus Corp. v. Brown, 709 F.2d 898, 900 n.

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Bluebook (online)
800 F.2d 1397, 21 Fed. R. Serv. 1054, 1986 U.S. App. LEXIS 31439, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-jones-cross-appellant-v-benefit-trust-life-insurance-company-ca5-1986.