Smith v. Nationwide Mutual Fire Insurance

385 S.E.2d 152, 96 N.C. App. 215, 1989 N.C. App. LEXIS 968
CourtCourt of Appeals of North Carolina
DecidedNovember 7, 1989
Docket8925SC146
StatusPublished
Cited by7 cases

This text of 385 S.E.2d 152 (Smith v. Nationwide Mutual Fire Insurance) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith v. Nationwide Mutual Fire Insurance, 385 S.E.2d 152, 96 N.C. App. 215, 1989 N.C. App. LEXIS 968 (N.C. Ct. App. 1989).

Opinion

WELLS, Judge.

As a preliminary matter we note that the trial court’s order was incorrectly titled “Order for Partial Summary Judgment.” Defendant has acknowledged responsibility for this error in his brief. It is not disputed that the trial court’s order was for dismissal of plaintiff’s claim for punitive damages pursuant to N.C. Gen. Stat. § 1A-1, Rule 12(b)(6) of the Rules of Civil Procedure. Ordinarily, an interlocutory order such as this is not immediately appealable. In this case the trial court’s order provides that there is no just *216 reason for delay. The order is therefore immediately appealable. N.C. Gen. Stat. § 1A-1, Rule 54(b) (1983 & Supp. 1988).

A Rule 12(b)(6) motion tests the legal sufficiency of the complaint. The question of law for the court is whether the allegations of the complaint, treated as true, are sufficient to state a claim upon which relief may be granted under some legal theory, whether properly labeled or not. Harris v. NCNB National Bank of N.C., 85 N.C. App. 669, 355 S.E.2d 838 (1987). “In analyzing the sufficiency of the complaint, the complaint must be liberally construed.” Dixon v. Stuart, 85 N.C. App. 338, 354 S.E.2d 757 (1987). A complaint is sufficient to withstand a Rule 12(b)(6) motion when it provides sufficient notice of the events and circumstances from which the claim arises and alleges the substantive elements of at least some recognized claim. Stewart v. Allison, 86 N.C. App. 68, 356 S.E.2d 109 (1987). A complaint should not be dismissed for failure to state a claim unless it appears to a certainty that plaintiff is not legally entitled to relief under any statement of facts which could be proved in support of the claim. Sutton v. Duke, 277 N.C. 94, 176 S.E.2d 161 (1970).

When determining whether a claim for punitive damages for breach of contract is sufficient to withstand a Rule 12(b)(6) motion the law in North Carolina is as follows:

[Generally,] punitive damages are not recoverable for breach of contract with the exception of breach of contract to marry. But when the breach of contract also constitutes or is accompanied by an identifiable tortious act, the tort committed may be grounds for recovery of punitive damages. [However], allegations of an identifiable tort accompanying the breach are insufficient alone to support a claim for punitive damages. . . . Even where sufficient facts are alleged to make out an identifiable tort, . . . the tortious conduct must be accompanied by or partake of some element of aggravation before punitive damages will be allowed.

(Citations omitted), Stanback v. Stanback, 297 N.C. 181, 254 S.E.2d 611 (1979). This type of aggravated conduct includes fraud, malice, oppression, insult, rudeness, caprice, and willfulness. Dailey v. Integon Insurance Corp., 57 N.C. App. 346, 291 S.E.2d 331 (1982). Punitive damages are also recoverable when the wrong is done in a manner which evinces a ruthless and wanton disregard of the plaintiff’s rights. Hornby v. Penn. Nat’l Mut. Casualty Ins. *217 Co., 77 N.C. App. 475, 335 S.E.2d 335 (1985), disc. rev. denied, 316 N.C. 193, 341 S.E.2d 570 (1986).

Plaintiffs first claim based on breach of contract was not dismissed. It is incorporated by reference into his second claim for punitive damages. In order to determine whether claim two establishes a claim for which relief can be granted we summarize claim one and set out in detail claim two.

Claim One

In addition to identifying the parties and the insurance policy, this claim details plaintiffs efforts to obtain settlement of his claim. The basic allegations are: On 23 July 1986 plaintiffs mobile home and property were extensively damaged when the mobile home fell from its concrete block foundation. An adjuster from defendant’s company inspected the mobile home on the same day it was damaged and indicated to plaintiff that he would engage a mobile home repair company to estimate the damage. This estimate was never performed and when plaintiff contacted the adjuster several weeks later, the adjuster suggested that plaintiff contact the mobile home’s manufacturer. The manufacturer was unwilling to make repairs and after three more weeks had passed without any contact with the adjuster despite plaintiff’s repeated attempts to telephone him, the plaintiff contacted the adjuster’s supervisor. The next day a representative from a mobile home repair company contacted plaintiff, at defendant’s request, informing him that he would not repair the damage but that he would submit an estimate to defendant. This estimate given 3 November 1986 was for $1,016.80. Another month passed without further action by defendant. In December 1986 plaintiff obtained an estimate from another mobile home company for $5,466.95. Plaintiff next contacted the North Carolina Department of Insurance concerning defendant’s failure to settle the claim. Defendant advised the State Insurance Specialist that a claims payment check had been mailed to plaintiff. Plaintiff later received and rejected defendant’s 29 December 1986 claim settlement check for $1,421.13. For the next nine months plaintiff attempted unsuccessfully to negotiate a settlement of his claim with defendant. Plaintiff then obtained counsel who contacted defendant 2 October 1987 and enclosed a third damage estimate in the amount of $5,950.00. Defendant objected to this estimate, suggested an estimate by a fourth repair company, and questioned which repairs were caused by the 23 July 1986 accident.

*218 Claim Two

I.-IX. That Paragraphs I-IX of Claim Number 1 are adopted and realleged by reference.

X. That the actions of defendant are aggravated and oppressive conduct which constitute a wrongful and tortious failure to settle a claim in good faith, for which plaintiff is, upon information and belief, entitled to recover punitive damages.

XI. That, upon information and belief, defendant’s actions were aggravated in:

(a) Not attempting in good faith to effectuate prompt, fair and equitable settlement of this claim in which liability has become reasonably clear, as prohibited by G.S. 58-54.4(ll)f; and

(b) Attempting to settle a claim for less than the amount to which a reasonable man would have believed he was entitled, as prohibited by' G.S. 58-54.4(ll)h; and

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Bluebook (online)
385 S.E.2d 152, 96 N.C. App. 215, 1989 N.C. App. LEXIS 968, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-nationwide-mutual-fire-insurance-ncctapp-1989.