I N TH E S U PR EM E C O U R T O F M I S S I S S I PPI N O. 2 0 0 5 - CA-0 0 8 4 9 - S CT TER RY L . BULLARD
v. T H E GUA R DI

A N L I F E I NS UR A NC E C OM P A NY OF AM ERI CA
D A T E O F JU D G M E N T : 04/ 01/ 2005 T R I A L J U D G E : H ON
. S H A R I ON R
. A Y COCK C O URT F RO M W HI C H AP P E

ALE D: ALC O RN C O UN T Y C I RC UI T

C O URT A TTO RN EY S F O R A

P P ELLA N T: RA C H EL M A RI E P I ERC E W I LLI A M M
. BEA S LEY ATT O RN E

YS F O R A

P P E L L E E : S T

E VE N H. BEGL

E Y JA M ES R. C A

RR O LL DAVID S
. C L

AN C Y K A RA E. F A Y N AT UR E O F T HE C AS E : C I VI L - T O RT S
- O T

HE R T HAN P E RS O N AL I N J UR Y & P RO P E

RT Y DAM AGE D I SPO SI T

I O N : R E V E R SE DA N DR E M A N D E D- 11/ 02/

2006 M O T I O N F O R R

E HE AR I N G F I L E D: M AN DAT

E I S S UE D:
E N B A NC . R AN D O LP

H , J US TI CE, F O R TH E CO UR T: ¶ 1. J oh

n W. P r at h er , M.D ., an

d h i s wi f e B ar bar a Pr at h er , ( c o l l ect i v el y “ t h e Pr at h er s ” ) , f i l ed
s u i t ag ai n s t T er r y L . B u l l ard ( “ B u l l ard” ) an d T h e G u ardi an Li f e I n s u r an ce C om pan y of A m er i ca ( “ G u ardi an ” ) on D ece m ber 15 , 2 00 0, abou

t t he i r 19 90 pu

r ch as e of a G u ardi an l i f e i n s u r an ce p o l i c y . B u l l a rd f i l e d a c r o s s - c l

a i m a g a i n s t G u a rd i a n , a l l e g i n g G u a rd i a n i n d u c e d h i m to s e l l th e P r at h er s a l i f e i n s u r an ce pol i cy base d u

po n f al s e an d m i s l eadi n g s al es pr es en t at i on s , p ol i cy i l l u s t r ati on s , a n d ot h e r m a r ke ti n g a n d s a l e s m at e ri a l
.2

¶2. L es s t

h an a y ear af t er f i l i n g s u i t , t h e P r a t he r s s et

tl ed t h e l aw s u i t wi t h B u l l ard an d G u a r di a n , a n d a j u dg m e n t of di s m i s s a l wi t h pr e j u di c e w a s e n

t e r e d on D e c e m be r 1 8, 2002. S u bsequ en tl y , G ua r di an m ov ed f or s u m m ar y j u dg m en t on B u l l ard’ s cross - cl

ai m , w h i ch t h e t ri al
c ou r t g r a n t e d on t h e ba s i s t h at B u l l a r d’ s c l a i m s w e re ba r r e d by t h e s t at u t e of l i m i t ati on s . F A C T S A ND P RO C E DU

RA L H I S T O RY ¶ 3. O n D e c e m

b e r 15, 2000, t

h e Pr at h e r s , s u e d B u l l a r d a n d G u a r di a n r e g a r di n g t h e i r 199 0 p u rc h a s e o f a G u a rd i a n l i f e i n s u ran c e p o l i c y . T h e P ra th e rs a l l e g e d t h a t B u ll

a rd re p re s e n te d to th e m th at t h e “ p o l i c y w o u l d req u i r e a ‘si n g l e p rem i u m ’ p a y m e n t o f $ 9 6 , 1 3 2 w

h i c h w o u l d c a rry t h e pol i cy f or t h ei r l i ve s . ” T he P r at

h er s f u r t h er al l eg ed t h at , at t h e t i m e of t h e s al e, B u l l ard an d G u a rd i a n c o n c e a l e d i n f o rm ati o n a n d m i s re p r e s e n te d th e te rm s o f th e p o l i c y , i n c l u d i n g th e i n te re s t se n s i ti v e n atu re o f th e p a y m e n t p l a n a n d t h e fa c t th

at th e p re m i u m s re qu i re d f o r th e po l i cy cou l d ch an g e, depen di n g on t h e di v i den d sca l e of G u ardi an . ¶ 4. A f t e r t he P r a t he r s w er e n ot i f i ed t h at addi ti on al pr em i u m s w ou l d b e du e on t h i s po l i cy , th e P ra th e rs f i l e d s u i t. T h e P ra t h e r s a s s e rte d

c l a i m s o f f ra u d , f ra u d u l e n t c o n c e a l m e n t,
m i s r e pr e s e nt a t i

on , n e g l i g e n c e , c on s pi r a c y , br e a c h of f i du c i a r y du t y , a n d br e a c h of du t y of g ood f a i t h a n d f a i r de a l i n g . B u l l a r d f i l e d a r e s pon

s i v e pl e a di n g , s pe c i f i c a l l y de n y i n g a l l c h a rg e s of f r au d, m i s r epr es en t at i on , f r au du l en t co n cea l m en t , an d f r au du l en t i n du cem en t . B u l l ard m ov ed f or an d w as g r an t ed l eav e t o f i l e a c r oss - cl

ai m ag ai n s t G u ardi an . B u l l ard f i l ed h i s cross - cl ai m
o n F ebr u ar y 5, 20 02 , al

l eg i n g t h at G u ardi an i n du ced h i m t o sel l t h e Pr at h er s a l i f e i n s u r an c e po l i cy base d u

po n f al s e an d m i s l eadi n g s al es pr es en

t at i on s , p o l i c y i

l l u s t r at i on s , an d o t h er
m ar k eti n g an d sal es m at eri al
. B u l l ar d al l eg ed t h at h e w as d am

ag ed as t h e r esu l t o f t h e l aw su i t
a n d th e a l l e g ati o n s m a d e a g a i n s t h i m .3

¶5
. G u a rd i a n th e n m o v e d f o r su m m a ry ju d g m e n t o n B u ll a r d ’s c ro ss - c l

a i m . T h e tr i a l c o u rt g ran te d G u a rd i a n ’s m o ti o n f o r s u m m a ry ju d g m e n t, s tati n g B u l l a rd ’s c la im

s w e re b a

rre d b y th e t h r e e - y e a r s tatu te o f l i m i tati o n s . B u l l a rd n o w a p p e a l s to th i s C o u rt ra i s i n g two i s s u e s f o r th i s C o u rt to c o n si d e r: I . W h e t h e r t he t r i a l

c ou r t e r r e d i n h ol d i n g t h at t h e s t at u

t e of li m it a t i o n s b a r

r ed B u ll a r d ’ s c l a i m s. I I . W h e th e r th e s ta t u t e o f

lim ita tio n s w

a s to lle d

b y fr a u d u le n t c o n c e a lm e n t. A

N A L Y S IS ¶ 6. T h i s C ou r t r e v i e w s g r a n t s of s um m a r y j ud gm e n

t u n de r t h e de n ov o s t a n da r d. St e phens
v . E qui t abl e

L i f e A ss ur an c e C o., 8 5 0 S o . 2 d

7 8 , 8 1 (M i

s s . 2 0 0 3 ); C

oss i t v . A l f a I ns . C or p., 726 So. 2d 132, 13 6 ( M i s s . 1 9 9 8) . Pu r s u a n t t o M i s s i s s i ppi R u l e of C i v i l Pr oc e du r e 56,
s u m m a r y ju d g m e n t i s a p p r o p ri ate wh e n th e n o n - mo v in g p a

r ty h a s f a i l e d “ to m ak e a s h o wi n g
s u f f i ci en t t o est abl i s h t h e e xi s t en ce of an el em en t es s en ti al t o t h e par t y ’ s cas e, an

d o n w h i ch t ha t pa r t y wi l l be a r t h e bu r de n of pr oof at t ri a l .” W i lb o u r n v . S t e n n e t t , W i lk i n s o n & W

a rd, 6 8 7 S o . 2 d

1 2 0 5 , 1 2 1 4 (Mi

ss . 1 9 9 6 ). I . W h e t h e r t h e t r i al c ou r t e r r e d i n h o l di ng t h at

t h e s t at u

t e of li m it a t i o n s b a r

r ed B u ll a r d ’ s c l a i m s. ¶7
. B u

l l a rd a rg u e s th e tr i a l c o u rt e rredi n h o l d i n g t h a t t h e statu te o f l i m i tati o n s b e g a n to ru n
at t h e ti m e B u l l a r d s ol d t h e i n s u r a n c e pol i c y t o t h e Pr at h e r s . M i s s . C o d e A nn. Sec ti

on 15- 1- 49
s t at e s , i n pa r t : “( 1) A l l a c ti on s f or w h i c h n o ot h e r pe ri od of l i m i t ati on i s pr e s c r i b e d s ha l l be
c om m e n c e d wi t h i n t h re e ( 3) y e a r s n e x t a f t e r t h e c a u s e o f s uc h a c t i o n a c c r

u e d, a n d n ot a f t e r .”4

¶ 8. B u

l l ard con t en ds t h at h i s cau s e o f a c t i o n d i

d n ot acc r u e u n ti l 20 00 w h en h e f i r s t l ear n ed of G u ardi an ’ s al l eg ed f r au d an d d i s h on es t y . I n h i s am en ded cr oss - cl

ai m ag ai n s t G u ar di an , B u l la r d a v e r r e d d am

a g e to h i s re p u tati o n a f te r th e P ra th e rs f i l e d s u i t a n d th at i t “ a p p e a re d to t he c o m m u n i t y t h at G u ardi an ’ s ‘ v an i s h i n g pr em i u m ’ con cept cau s ed h i m t o b et r ay h i s po l i cy h ol der s .” G u ardi an ar g u es t h at B u l l ard’ s cl ai m s base d o n

G u ardi an ’ s al l eg ed f r au d b e gan t o r u n i n 1990 u pon c om pl e ti on of t h e s a l e o f ins ur a

n c e t o t h e Pr at h e r s t h at w a s pu r por t e dl y i n du c e d by t h e a l l e g e d f a l s e r e pr e s e n

t ati on s . ¶9. T h i s C o u r t f i n d s t h at i n 1 9 9 0 B u l l ar d w as w i t h o u t a ca u s e o f a c t i o n , i f as h e cl ai m s h e h a d n o kn o wl e d g e o f b e i n g i n v o l v e d i n a n a l l e g e d f ra u d u l e n t sc h e m e , b u t m o re i m p o rta n tl y , be c a u s e h e h a d s u f f e r e d n o dam a g e . I n t h e a bs e nc e of

dam a g e , n o l i ti g a bl e e v e n t a r os e . Bu l l a r d ’ s c a u s e o f a c ti o n a g a i n s t Gu a r d i a n d id n o t a c c r u e o r o c c u r p u r s u a n t t o M i s s . C o d e An

n . S ect i on 15
- 1- 49 ( 1) u

n ti l t he P r a t h

er s f i l ed su i t ag ai n s t h i m i n 20 00 . A s B u

l l ard’ s cl ai m
a g a i n s t G u a rd i a n d i d n o t a c c ru e u n ti l 2 0 0 0 , B u

l l a rd ti m e l y f i l e d a c ro s s - c l a i m i n 2 0 0 2 , wi

th i n t h e ap p l i cab l e st at u t e o f l i m i t ati o n s. ¶10
. B u

l l ar d ’ s cro ss- cl

ai m r ead s, “ [ t ] h

e act s o f t h e p l

ai n ti f f s i n b ri n g i n g t h i s l aw su i t ag ai n st h i m h av e i n ju red h i m a n d d am a g e d h i s p ro f e ss i o n a l sta n d i n g , r e p u t a ti

o n , c h a rac ter, a n d e a rn i n g cap a c i t y , an d h e h as s u f f er ed an x i et y , em bar r as s m en t , w or r y , m en t al an d em ot i on al di s t r es s an d h e i s e n ti tl e d t o a c t u a l dam a g e s in a n a m

ou n t t o be de t e r

m i n e d by a j u r y .” B u l l a r d a l s o s e e ks d am a g e s f o r th e atto rn e y ’s f e e s , w h i c h h e w o u l d n o t h av e i n c u rre d , b u t fo r th

e s u i t f i l e d b y th e Pr at h e r s . B u l l a r d c l a i m s t o h av e h a d n o kn owl e dg e of t h e a l l e g e d f r a u du l e n t c on c e pt of G u a rd i a n p re c e d i n g th e f i l i n g o f th e l a w s u i t a g a i n s t h i m .5

¶ 11. T h e ba s i c e l e m e n t s n e c e s s a r y t o s t a t e a ny t o r t c l

a i m a r e du t y , br e a c h of du t y , c a u s ati on be t w e e n t h e br e a c h of t h e du t y a n d t h e i n j u r y , a n d a c t u a l dam a g e . S ee C i t y of G r eenvi l l e v. Jones , 9 2 5 S o . 2 d

1 0 6 , 1 0 9 ( M i

s s . 2 0 0 6 ); M

ont gom e r y v . W oolbr i ght , 904 So.2d 1027, 1029 (M i s s . 2 0 0 4 ). T

h i s C o u rt h a s h e l d th at, “ a c a u s e o f a c ti o n ‘a c c ru e s ’ w h e n it c o me s in

to
e x i s t e nc e a s a

n e n f or c e a bl e c l a i m , t h at i s , w h e n t h e ri g h t t o s u e be c om e s v e s t e d.” F orm an v. M i ss . P ubl i s her ’

sC or p., 195 M i

s s . 90, 14 So.2d 344, 346 ( 1943)
. B ul l a r d ’ s c l a i m di d n ot
a c c ru e u n t il 2 0 0 0 , w

h e n kn o wl e d g e o f b rea c h a n d a c tu a l d am a g e o c c u rred , a f ter th e P rath e rs
m a d e a l l e g ati o n s a g a i n s t h i m . E v e n i f B u l l a rd h a d kn

o wl e d g e i n 1 9 9 0 , w

h i c h h e d e n i e s , th e
o u t co m e w o u l d b e n o d i f f er en t , f o r wi t h o u t i n j u r y , n o acti o n l i es. ¶ 12
. T h e ci r cu i t cou r t er r ed i n g r ant ing G ua r d i a n ’ s m

ot i on f or s u m m ar y j u dg m en t , as B u l l a r d ’ s c a u s e o f a c ti o n d i d n o t a ri s e w h e n t h e p o l i c y w a s s o l d
. B a s e d o n t h e r e c o r d , we
c a n n ot s a y B u l l a r d ha d a c a u

s e of a c ti on w h e n t h e pol i c y w a s s ol d, n or c a n w e s a y h e w a s or
s h o u l d h av e b e e n a w a re o f th e f ra u d a l l e g e d l y c o m m i tte d b y G u a rd i a n u p o n h i m a n d th e Pr at h e r s . T hi s i s a na l

a g ou s t o ou r h ol di n g i n P P GA r c hi t e c t ur al F i ni s hes , I nc. v . L ow e r y , a p e rso n a l i n ju ry c a se i n w h i c h w e h e ld , “ i t i s w e l l
- e sta b l i sh e d th at p res c ri p ti o n d o e s n o t r u n
a g a i n s t o n e w h o h a s n e i th e r a c tu a l o r c o n s tru c ti v e n o t ic e o f

th e f a c ts th at wo u l d e n ti tl e h i m to bri n g a n a c ti on .” P P GA rch i t ec t u r a l F i n i s h es, In c. v. L o w ery , 909 So.2d 47, 50 ( M i s s . 2005) (qu o ti n g Sw e e ney

v . P r e s t on, 642 So.2d 332, 334 ( M i s s . 1994) )
. ¶ 13. B u

l l a r d c l a i m s t o h av e l e a r n e d of G u a r di a n ’ s f r a u d a n d s u f f e r e d d a m a ge t o h

i s r e pu t ati on i n 2000. T h e di s s e n t c on t e n ds t h a t B ul l a r d s h

ou l d h av e br ou g h t s u i t wi t h i n t h r e e y e a r s of 1990. T h i s c o n te n ti o n w o u l d re qu i re B u l l a rd to p re s a g

e th at th e P ra th e rs w o u l d f i l e s u i t a g a i n s t h i m
a n d c a u s e h i m dam a g e . Su c h a c l a i m f or pr os pe c ti v e or pos s i bl e d a m a ge s i s n

ot r e c og n i z e d by6

t h i s s t at e . See P

P GA r c hi t e c t u r a l F i n i s hes

v . L ow e r y , 9 0 9 S o . 2 d

4 7 ; P r es cot t v. L eaf R i ver F o r e s t P r ods ., I nc, 7 4 0 S o . 2 d

3 0 1 (M i s s . 1 9 9 9 ); St ahel i v

. Sm i t h, 5 4 8 S o . 2 d

1 2 9 9 (M i ss. 1 9 8 9 ). We on

l y h av e t o a s k o ur s el

v es i f B u l l ard h ad br ou g h t s u i t i n 19 93 , an

d n o d am ag e h ad y et occu r r ed or acc r u ed, cou l d B u l l ard h av e s u cce s s f u l l y s u r v i v ed a R u l e 12(b) ( 6) m

ot i on ? See M .R .C .P . 1 2 ( b ) ( 6) . A

r eas on ed an al y s i s can r es u l t i n on l y on e con cl u s i on : s u ch a cl ai m t h en
c ou l d n ot s u r v i v e . ¶ 14. A s I s s u

e Ii s di s pos i ti v e , t h e C ou r t f i n ds I s s u e I It o be m

oot . C ON C L U S I ON ¶1 5
. B u

l l a rd d i d n o t h av e a c a u s e o f a c t io n a g a i n st G u a rd i a n u n ti l 2 0 0 0
. T h e ref o re, B u l l a rd f i l e d h i s c la im w i

th i n th e statu te o f l i m i tati o n s. A c c o rd i

n g l y , w e rev e rse th e c i rcu i t co u rt ’s ju d g m e n t a n d re m a n d th i s c a s e to th

at c o u rt f o r f u rth e r p ro c e e d i

n gs c o n s i s te n t w i th th is
o p i ni o n. ¶ 16. R E V

E R SE D A

N D R E M A

N D E D . SM I T H , C .J., W

A L L E R A N D C O B B , P .JJ., D I A

Z , C A R L SO N A

N D D I C K

I N SO N , JJ., CO N CUR . GR AVES , J . , CO N CUR S I N R ES ULT O N LY . EAS LEY

, J . , D I S S EN TS W

I TH S E P A RA T EW RI T T E N O P

I NI O N.
E A S L E Y , J U S T I C E , DI S S E NT I NG : ¶ 17. T oda

y, t he m a

j ori t y e f f e c ti v e l y ov e r r u l e s a l on g l i n e of t h i s C ou r t ’ s c a s e s a

n d e x t e n ds th e ti m e th e s tatu te o f lim it a t io n s b e g

i n s to ru n i n c a s e s th at a l l e g e f ra u d a n d d e c e i t. H e re , th

e
m a jo ri ty e x ten d s th e statu te o f l i mi tati o n s to a l l o w a su i t ag a i n st G u a rd i a n to p ro c e e d

m o re t h a n t e n y e a r s a f t e r t h e i n s u r a n c e pol i c y w a s s ol d, de s p i t e t

h e f a c t t h at t h e a l l e g e d f r a u d by G u a r di a n oc c u r r e d i n 1990. I n

s t e a d of h ol di n g t h at t h e s t at u t e of l i m i t ati o ns b e ga n t o r

u n f r om7

t h e co m p l eti o n o f t h e sal e o f t h e i n su r a n ce i n 1 9 9 0 t h at w as al l eg ed l y b ased o n

f al se
r epr es en t at i on s , t h e m aj or i t y adop t s t

h e posi ti on t h at t h e s t a t ut e of

l i m i t at i on s di d n ot beg i n t o r u n u n t i l B ul l a r d w a s a l l e g e dl y “ dam a g e d” by t h e a l l e g e d f r a u d i n 2000 w h e n h i s r e pu t ati on
w as al l eg edl y t ai n t ed by t h e Pr at h er s i n 20 00 . T

he a rg u m en t adv an ced by B u l l ard, an d ado pt ed b y t h e ma

j o r i ty , i s m o re a p p ro p ri ate f o r a c l a i m o f a l l e g e d d e f am ati o n ra th e r th a n a c l a i m o f al l eg ed f r au du l en t i n du cem en t ag ai n s t G u ardi an . ¶18
. T h e m aj o ri t y ’ s h o l d i n g co n t r a d i c t s t h i s C o u

r t ’ s h o l d i n gs i n S an ders on F

arm s , Inc. v. B a l l a rd , 9 1 7 S o . 2 d

7 8 3 , 7 8 9 (M i

s s . 2 0 0 5 ); A n d r u s v . El l i s , 8 8 7 S o . 2 d 1 7 5 , 1 8 0
- 8 1 ( Mi

ss. 2 0 0 4 ); S t e p h e n sv . Eq u i t a b l e

Lif e Ass u r a n c e Co
. , 8 5 0 S o . 2 d

7 8 , 8 1
- 8 2 (M i

s s . 2 0 0 4 ); D unn
v . D e nt , 1 6 9 M i

s s . 5 7 4 , 1 5 3 S o . 7 9 8 , 7 9 8 (1 9 3 4 ), w h i c h e s ta b l i s h e d th at th e th re e - y e a r s ta tu te
o f l i m i tati o n s f o r a l l e g e d c l a i m s o f f ra u d a n d f ra u d u l e n t i n d u c e me n t b e g in s to ru

n a f te r th e
c o m p l e ti o n o f th e s a l e o f th e i n s u ran c e p o l i c y , o r th e c o n tra c t w a s s i

g n e d , u n l e s s to l l e d b y th e def en dan t ’ s act s of

f r au du l en t con cea l m e nt . B as ed on

ou r deci s i on t od ay , i n al l pen di n g cas es i n v o l v i n g th e qu e s ti o n o f a l l e g e d f ra u d , i n c l u d i n g c l a i m s o f f ra u d u le n t i n d u c e m e n t to e n te r i n to i n su ran c e p o l i c i e s w i th a l l e g e d v a n i sh i n g p rem i u ms o r d i

v i d e n d sta b i l i z ati o n res e rv e (D S R ), t h e t h r ee- y ear peri odof s t at u t e of l i m i t at i on s wi l l n ot beg i n t o r un f

r o m w he n t

h e pol i cy w as
s ol d, a s pr e v

i ou s l y h e l d by t h i s C ou r t . I n s t e a d, ba s e d on

t h e m a j ori t y ’ s l og i c , t h e s t at u t e of l i m i t ati on s wi l l n ow be g i n t o r u n w h e n t h e pl a i n ti f f w a s a l l e g e dl y “ dam a g e d.” ¶ 19. G i v e n t h i s C ou r t ’ s pr e c e de n

t s a n d t h e f a c t s i n t h i s a ppe a l , t h e on l y l o gi c a l c on

c l u s i on th at can b e rea c h

e d i s th at t h e tr i a l c o u rt c o rrec tl y d e term i n e d th a t B u ll a r d ’ s c l

a i m s w e re ba r r e d by t h e t h r e e - y e a r s t at u t e of l i m i t ati on s w h i c h be g a n t o r u n w h e n t h e p o l i c y w a s s ol d i n 1 9 9 0 . T h e Pr at h e r s di d n ot f i l e s u i t a g a i n s t B u l l a r d a n d G u a r di a n u n ti l t e n y e a r s l at e r in 2 0 0 0 ;8

B u l l a rd c ro ss - c l a i m e d a g a i n st G u a rd i a n c l a i m i n g th at G u a rd i a n i n d u c e d h i m to se l l th e P rath e rs a l i f e i n su r an ce p o l i cy b ased u p o n f al se an d m i sl ead in g s al

es pres en t ati o n s, p o l i cy i l l u st r ati o n s,
an d o t h er m ar keti n g an d sal es m at er i al
. ¶20. Im

u s t r e s pe c t f u l l y di s s e n t f r om t h e m a j ori t y ’ s re a s on

i n g t h at B u l l a r d i s no t ba

r r e d by st at u t e o f l i m i t ati o n s f r o m m a i n t a i n i n g h i s a c ti o n a g a i n s t G u a r d i a n . T h e r e f o r e , Iw o u l d a f

f irm t h e t ri a l c ou r t ’ s g r a n t of s u m m a r y j ud gm e n t i n f av or of G u a r di a n a s t h e t h r e e - y e a r s t at u t e of l i m i t at i o ns ha d l

on g ex pi r ed si n ce t h e i n s u r an ce pol i cy w as s ol d i n 19 90 . A s s u

ch , I am
com pel l ed t o w ri t e s epar at el

y t o add r es s t

h e i s s u es of s t at u t e of l i m i t at i on s an d f r au du l en t
co n ceal m en t r a i s e d b y t h e p ar ti es on ap p eal ap p l y i n g t h i s C o u r t ’ s preceden

t p r ev i o u sl y
m en ti on ed abov e. I . St at u

t e of L i m it at i on s ¶21
. B u

l l ard arg u es t h at t he t r i al

cou r t er r ed i n h ol di n g t h at t h e s t at u t e of l i m i t at i on s beg an to ru n , u n d e r M i s s . C o d e A

n n . § 1 5
- 1
- 4 9 , at th

e ti m e B u l l a rd s o l d th e i n s u ran c e p o l i c y to th e P r at h er s. S p eci f i cal l y , Mi ss. C o d e A

n n . § 1 5
- 1
- 4 9 stat es: ( 1) A l l a c ti on s f or w h i c h n o ot h e r pe ri od of l i m i t ati on i s pr e s c ri b e d s h a l l be c om m e n c e d wi t h i n t h r e e ( 3) y e a r s n e x t a f t e r t h e c a u s e of s u c h a c ti o n a c c r u e d, a n d n o t af ter. ( 2) I n act i on s f or w h i ch n o o t h er peri odof l i m i t at i on i s pr es cr i bed a nd w hi

ch i n v o l v e l ate n t i n ju ry o r d i s e a s e , th e c a u s e o f a c ti o n d o e s n o t a c c ru e u n ti l th e p l a i n ti f f h a s d i s c o v e re d , o r b y

re a s o n a b l e d i l i g e n c e s h o u l d h av e d i s c o v e r e d th

e i nj ur y. ¶22. B u

l l a r d c on t e n ds t h at h i s c a u s e of a c ti on di d n ot a c c r u e u n ti l 2000 w h e n h e l e a r n e d of G u a r di a n ’ s a l l e g e d f r a ud a n d di s h on e s t y . G u a r di a n a rg u e s t h at B u l l a r d’ s c l a i m s ba s e d on9

G u a rd i a n ’s a l l e g e d f ra u d b e g a n to ru n i n 1 9 9 0 u p o n c o m p l e ti o n o f th e s a l e o f i n s u ran c e to th e P r at h er s t h at w as pu r p o r t ed l y i n d u ced b y t h e al l eg ed f al se r ep r esen

t ati o n s. ¶23
. T h i s C ou r t h as h el d t ha t t h

er e i s a t h r ee- y ear s t at u t e of l i m i t at i on s f or cl ai m s of br eac h of a f i du c i a r y du t y , m i s r e pr e s e n t ati on , a n d c on s pi r a c y . See A m. B a n k e r sI n s . C o . v . W e lls , 819 So. 2d 1196, 12 0 0 ( M i s s . 2001) . T

h i s C ou r t h a s a l s o a ppl i e d a t h r e e - y e a r s t at u t e of l i m i t ati on s f or f r a u du l e n t c on c e a l m e n t , n e g l i g e n t h i ri n g , a n d c on c e a l m e n t . St e phens , 850 So. 2d at 82; s e e al

s o M i s s . C ode A

n n . § 15- 1- 49. U

n de r M i s s i s s i ppi l a w , t h e “ ri g h t of a c ti on f or
s u c h de c e i t a c c r u e s u pon t h e c om p l e t i on of t h e s a l e i n du c e d by s u c h f a l s e r e pr e s e n

t ati on , or
u p o n t h e co n su m m ati o n o f t h e f r au d
. . . u n l ess t h e g r an t o r ‘ f r a u d u l e n t l

y co n ceal [ s] t h e cau se
o f a c ti o n f ro m th e kn o wl e d g e o f t h e p e r so n

e n ti tl e d th e reto . ’” D unn , 1 5 3 S o . at 7 9 8
. Mo re
r e c e n tl y , i n Sander s on F ar m s , 91 7 S o. 2dat

78 9, t h i s C ou r t h el d t h at f r a u du l en t i n du cem en t
an d f r au du l en t con ce a l m en t cl ai m s h av e a t h r ee- y ear s t at u t e of l i m i t at i on s an d f r au d cl ai m s
a c c r u e at t h e ti m e of t h e c om pl e ti on of a s a l e i n du c e d by f a l s e r e pr e s e n

t ati on s or
c on s u m m ati on of t h e a l l e g e d f r a u d. S ee a l so St e phens , 850 So. 2d at

81. ¶24. W i t hin h

i s am e n de d c r os s - c l

a i m , B u l l a r d s t at e s t

h at G u a r di a n i n du c e d h i m t o s e l l t o t he P r at h er s “ a l i f e i n s u r an ce pol i cy base d o n

t h e f al s e an d m i s l e a d in g s al es pr es en t at i on s , p ol i cy i l l u s t r at i on s an d o t h e r m a r k e t ing

an d sal es m at er i al , al l u n kn ow n t o B u l l ard, an d B u l l ard w as i n j u r ed an d d am ag ed b y b ei n g cau sed t o m i sl ead t h e P r at h er s abo u t t h ei r p r e m i u m s, d i v i d en d s, po l i ci es , an d/ or ot h er as pect s of

t h e i n s u r an ce, t h e cos t s an

d b en ef i t s of s ai d p ol i c i e s , w h i ch
w e re kn o w n to G u a rd i a n , b u t u n kn o w n to B u l l a rd
. ” T h u s , a p p l y i n g c u rr e n t M iss i

s s i p p i l a w to B u l l a r d ’ s c l a i m s of

f r a u d a n d m i s r e pr e s e n t ati on , h i s c a u s e of a c ti on a c c r u e d u pon c om pl e ti on of t h e s a l e of t h e pol i c y t o t h e Pr a t he r s . M i

s s i s s i ppi l a w c on c e r n i n g a n a c ti on f or f r a u d or10

m i s r e pr e s e n t ati on doe s n o t a l l ow f or a c c r u a l of a c l a i m ba s e d u pon di s c ov e r y of dam a g e s , bu t
on l y w h en t h e s al e i n du ced by t h e f r au d i s com pl et e. ¶25
. I n t h i s cas e, B u

l l ard sol d t h e pol i cy t o t he P r a t he r s in 1 9 9 0 an d an y cl ai m h e h ad
con cer n i n g f r au d o r m i s r epr es en t at i on acc r u ed at t ha t t i m e a n

d n ot i n 20 00 w h en h e di s cov er ed h i s a l l e ge d d a m a ge s . T

h e r e f or e , u s i n g 1990 a s t

h e y e a r B u l l a r d’ s c a u s e of a c ti on a c c r u e d,
u n d er Mi ss. C o d e A

n n . § 1 5
- 1
- 4 9 ( 1 ) , h

e h ad t h r ee y ea r s f r o m 1 9 9 0 t o f

i l e a cl ai m ag ai n st G u ardi an f or f r au d an d/ or m i s r epr es en t at i on . F u r t h er m or e, B u l l ard’ s cl ai m di d n o t i n v ol v e a l aten t i n ju ry o r d i se a se u n d e r Mi ss . C o d e A n n . § 1 5
- 1
- 4 9 (2 ); a n d th e ref o re, th e d i sc o v e ry
e l e m e n t o f Mi ss . C o d e A

n n . § 1 5
- 1
- 4 9 (2 ) d o e s n o t ap p l y . B a se d o n th

i s a n a l y si s o f B u l l a rd ’s
c l a i m s, t h

e t ri a l c o u r t d i d n o t e r r i n h o l d i n g t h at t h e s t at u t e o f l i m i t ati o n s b a r r e d B u l l a r d ’s
c a u s e of a c ti on . I I . Fr a udul e nt C o nc e a l m

e nt ¶26
. B ul l a r d c o n

t en ds t h at ev en i f t h e C ou r t h ol ds t h at h i s cau s e of act i on di d accr u e w h en h e s ol d t h e pol i c y t o t h e Pr at h e r s , h i s c l a i m s a re n e v e r t h e l e s s ti m e l y be c a u s e t he r unni

n g of th e s tatu te o f l i m i tati o n s w a s to l l e d b y th e G u a rd i a n ’s f ra u d u l e n t c o n c e a l m e n t. ¶27
. T he M i s s i s s i

pp i L eg i s l at u r e codi f i ed t h e ci r cu m s t an ces u n der w h i ch t h e s t at u t e o f l i m i t a t i o n s m a y b e t o l

l ed w h en a cl ai m o f f r au d u l en t co n ceal m en t i s m ad e. S p eci

f i cal l y , Mi ss. C o d e A n n . § 1 5
- 1
- 6 7 p ro v

i d e s th at “ i f a p e rs o n l i a b l e to a n y p e rs o n a l a c ti o n s h a l l f ra u d u l e n tl y
c on c e a l t h e c a u s e o f a c t i on

f r om t h e kn owl e dg e of t h e pe r s on e n ti tl e d t h e r e t o, t h e c a u s e of act i on s h al l be deem

ed t o h av e f i r s t ac c r ue d at , an

d n ot bef or e, t h e t i m e at w h i ch s u ch f r au d sh a l l b e , o r w

i th rea so n a b l e d i l i g e n c e m i g h t h av e b e e n , f i r s t k n o w n o r d i

sc o v e red
. ” T h i s C o u rt h a s b e e n c a l l e d u p o n o n n u m e r o u s o c c a s i o n s to i n te rp re t th e s tatu te a s dra f

te d b y th e11

L e g i s l at u r e . I n or de r

t o de c i ph e r w h e t h e r or n ot B u l l a r d i s e n ti tl e d t o r e l i e f on t h i s c l a i m , ou r pri or de c i s i on s m u s t be r e v i e w e d a n d a n a l y z e d. ¶2 8
. In St e

phens , t h i s C o u r t ap p l i ed a t w o - p r o n g t e s t f

o r f r au d u l en t co n ceal m en t cl ai m s. Mi ss. C o d e A

n n . § 1 5
- 1
- 6 7 ( R

ev . 2 0 0 3 ) stat es: If a p e rs o n li

a b l e to a n y p e rs o n a l a c ti o n s h a l l f ra u d u l e n tl y c o n c e a l th e c a u s e of a c ti on f r om t h e kn owl e dg e of t h e pe r s o n e n

ti tl e d t h e r e t o, t h e c a u s e of act i on s h al l be deem ed t o h av e f i r s t acc r u ed at , an d n ot bef or e, t h e t i m e at w h i ch s u c h f r a u d s h a llb e , o r

wi th r e a s o n a b l e d i l i g e n c e m i g h t h av e b e e n , f i r s t k n o wn or di s c ov e r e d. ¶2 9
. In R obi ns on v. C obb , 7 63 S o. 2d88 3, 88 7 ( M i s s . 2 00 0) , t h i s C ou r t h el d t h at

“ [f ]ra u d u l e n t c o n c e a l m e n t o f a c a u s e o f a c ti o n to l l s it s s t a t u t e o f

l i m i tati o n s . ” T h i s C o u rt i n St e phensh e l d “ t h e pl a i n ti f f s h av e a t w o- f ol d obl i g ati on t o de m o ns t r a t e t

h at ( 1) s om

e af f i r m at i v e ac t or con du ct w as do n e an d p r ev en t ed di s cov e r y of a cl ai m , an d ( 2) du e di l i g en ce
w a s pe r f or m e d on t h e i r pa r t t o di s c ov e r i t .” St e phens , 8 5 0 S o . 2 d

at 8 4 ; see al

so A ndrus , 887 So. 2d at 181. ¶3 0
. In S

a n d e r s o n F a r ms , t h i s C ou r t h el d, i n r eg ard t o f r au du l e nt c o nc e a lm en

t cl ai m s , t h at

“ t h er e m u s t be sh ow n s om e ac t or con du ct of an af f i r m at i v e n at u r e d e s i g n ed t o p r ev

en t an d
w h i c h doe s pr e v

e n t di s c ov e r y of t h e c l a i m .” S a n d e r s o n F a r ms , 9 1 7 S o . 2 d

at 7 9 0 (c i

ti n g R ei ch v. J

es co, Inc. , 5 2 6 S o . 2 d

5 5 0 , 5 5 2 (M i

s s . 1 9 8 8 )); see al

so A ndrus , 887 So. 2d at 181; St e phens , 850 So. 2d at

83- 84. ¶3 1
. “ M e r e ly a l

l e g i n g th at th e o th e r s i d e h a s c o m p l e te c o n tro l o f [i n f o rm ati o n ] s i m p l y wi ll
no t s uf f i c e . ” S a n d e r s o n F a r ms , 9 1 7 S o . 2 d

at 7 9 0
. T h is C o u

rt h a s s p e c i f i c a l l y s tate d th at i t
r equ i r es " t h er e m u s t be so m e s ub s e q uen

t af f i r m at i v e ac t by t h e def en dan t w h i ch w as desi

g n edW h i l e n o t b i n d i n g a s a u th o ri ty , th e U n i te d S tate s C o u

rt o f A p p e a l s f o r th e F i f th 1 C i r c u i t h a s a ddr e s s e d w

h at i s r e qu i r e d t o t ol l t h e s t at u t e of l i m i t ati on s u n de r t h e doc t ri n e of f r a ud ul e nt c o nc e a l m e nt : “[ I ] n R os

sv . Ci t i F i nanc i al , I nc . , 3 4 4 F
. 3 d

4 5 8 , 4 6 4 (5 th

C i r. 2 0 0 3 ), w e h

e l d th at Mi s s i s s i p p i l a w i s i n f a c t w e l l s e ttl e d wi th re s p e c t to th

i s i s s u e , s tati n g t h at ‘ M i s s i s s i ppi l a w i s u n am bi g u ou s : Pl a i n ti f f s m u s t pr ov e a s u bs e qu e n t a f f i r m ati v e a c t of f rau d u l e n t co n c e a l m e n t t o to l l th e l i m i tati o n s. ’” L i dd el l v. F i r s t F am i l y F i n . Ser vs ., 146 Fed. A ppx . 748, 751 ( 5t

h C i r . 2005)
. Fu r t h e r , i n Jones v . L i f e of Sout h I ns . C or p., 2 0 0 6 U. S
. Di

s t. L E XI S 1 4 1 4 ( S
. D. M i s s . J a n . 4, 2006) , t

h e U n i t e d St at e s D i

s t ri c t C ou r t f or t h e Sou t h e r n D i s t ri c t of M i s s i s s i p p i re c e n tl y a d dre s s e d

th e i s s u e o f f ra u d u l e n t c o n c e a l m e n t a n d a p p l i e d th e F i f th C i r c ui t ’ s ho l d i ng i n L id d e ll , stat i n g “ u n der M i s s i s s i pp i l aw , t h e f r au du l en t con cea l m en t s tatu te re qu i re s th at th e p l a i n ti f f s h o w a f f i rm ati v e a c ts o f c o n c e a l m e n t af t er t he ti m e o f t he a l l e g e d f r a u d.” 12 t o pr e v e n t a n d w h i c h d i d p r e ve nt d i

s c ov e r y of t h e c l a i m " t o t ol l t h e r u n n i n g of t h e s t at u t e of l i m i t ati on s u n de r t h e doc t ri n e of f r a u du l e n t c on c e a l m e n t . A ndrus , 8 8 7 S o . 2 d at 1 8 1 (c i

ti n g St e phens , 8 5 0 S o . 2 d

at 8 3
- 8 4 ). 1 ¶3 2
. A c c o rd i

n g l y , B u l l a rd m u s t f i rs t sh o w a s u b s e qu e n t a f f i rm ati v e a c t b y G u a rd i a n , “ w h ic h
w a s d e s i g

n ed t o p r ev en t an d w h i ch d i d p r ev en t d i scov er y o f t h e cl ai m s.” S eco n d , B u l l ar d m u st pr ov e t h at h e ac t ed wi

t h du e di l i g en ce i n at t em pt i n g t o d i s cov er t h e f act u al basi s f or h i s cl ai m s
a n d w a s un a bl e t o do s o. A ndr us

, 8 8 7 S o . 2 d

at 1 8 1 ; s e e al

s o Sander

s on F ar m s , 917 So. 2d at 79 0. B u

l l ar d a s s e r t s t ha t “

as a par t of h i s cross - cl ai m s , h e h as al l eg ed an d can pr ov e, t h at G u a r di a n e s t a bl i s h e d a di v i de n d s t a bi l i z ati on r e s e r v e .” ¶3 3
. H e f

u rth e r s tate s th

at “ th e e f f e c t o f th at re s e rv e w a s to c a

u s e th e d i v id e n d s o f th

e
c om pa n y t o be h i g h e r i n 1988 a n d 1989 t h a n t h e y ot h e r wi s e w ou l d ha ve b e e n . T

h e i l l u s t r ati on p ro v i d e d to h i m a n d to th e P rath e rs w a s b a se d

o n th e c o m p a n y ’s d i v id e n d s , w h i

c h w e re
a r ti f i c i a l l y i n f l at e d by t h i s ‘ di v i de n d s t a bi l i z ati on r e s e r v e ’ ( D SR ) .”13

¶ 34. B u

l l a r d’ s f r a u du l e n t c on c e a l m e n t a rg u m e nt i s pr obl

e m ati c . B u l l a r d h a s n ot of f e r e d or pr ov e n a n y s u bs e qu e n t a f f i r m ati v e a c t of f r a u du l e n t c on c e a l m e n t t o t ol l t h e s t at u t e of l i m i t ati on s . B u l l a r d h a s n ot a s s e r t e d t h at G u a r di a n c om m i t t e d a n a f f i r m ati v e a c t of
con cea l m en t . T h u s , B u l l ard h as f ai l ed t o sat

i s f y t h e f i r s t pr o ng t o s u

s t ai n a f r au du l en t
con cea l m en t cl ai m . ¶ 35. T h e n e x t qu e s ti on t h at m u s t be a ddr e s s e d i

s w h e t h e r B u l l a r d s ati s f i e d t h e s e c on d pr on g
o f th e req u i rem e n ts n e c e ss a ry to p ro v e a f rau d u l e n t co n c e a l m e n t cl a i m - d u e d i l i g e n c e . B u l l a rd
m u s t pr es en t ev i den ce t o t h i s C ou r t t hat h e ex erci s ed du e di l i g en ce t o d i s cov er t h e f act u al b a s i s o f h i s c l a i m s . T h i s a l s o p o s e s a

p ro b l e m f o r B u l l a rd a s h e c i te s to n o e v i d e n c e th at h e act ed wi t h d u e d i l i g en ce t o d i scov er t h e f act u al b asi s f o r h i s cl ai m s. ¶ 36. B u

l l a r d f a i l e d t o pr e s e n

t e v i de n c e t ha t he t o o k a ny

a c ti on t o obt a i n t h e a l l e g e dl y
con cea l ed i n f or m at i o n con cer n i n g t h e D S R an d t h e s u s t ai n abi l i t y of di v i den ds. I r on

i cal l y , B u l l ar d al so co n ced ed t h at h e w as a “

p assi v e” p ar ti ci p an t d u ri n g t h e sal es process. H e al

so adm i t t ed t h at h e r ead abou

t t h e D S R i n a F orbes a rt i c l e w h i c h h e se n t t o th e P rath e rs b e f o re t h e y pu r c h a s e d t h e po l i c y . H ow e v

e r , B u l l a r d a dm i t t e d t h at h e di d n ot a s k M a r k Pa c e , a G u a r di a n a g e n t wi t h w h om h e w or ke d, or a n y on e e l s e at G u a r di a n , f or m or e i n f or m ati on a bou t t h e DS R. ¶ 37. Fi n a l l y , B ul l a r d t e s ti

f i e d t h at by A pri l 1998, h e kn e w t h at t h e Pr at h e r s ’ pol i c y w a s n ot pe r f or m i n g i n a c c or d a nc e w i t

h t h e ori g i n a l i l l u s t r ati on s a n d t h at a ddi ti on a l pr e m i u m s w ou l d be r equ i r ed. H ow ev

er , B u l l ar d d i d n

ot s eek to i

n v es ti g at e t h i s m at t er . U n der t h e cu r r en t s et of f a c t s , B u l l a r d h a s n ot e s t a bl i s h e d t ha t h e e x e r c i s e d du e di l i g e n c e t o di s c ov e r h i s c l a i m s . See14

A ndrus , 8 8 7 S o . 2 d

at 1 8 1 ; St e

p he ns , 850 So. 2d at

84. T h e r e f or e , t h e t h r e e - y e a r s t at u t e of l i m i t ati on s i s n ot t ol l e d pu r s u a n t t o M i s s . C ode A

n n . § 15- 1- 67. ¶ 38. For

t h e f or e g oi n g r e a s on s , t h e t hr e e - ye a r s t a t

u t e of l i m i t ati on s ba r s B u l l a r d’ s a c ti on . T h e tri a l c o u rt g o t i t e x a c tl y ri g h t i n g ran ti n g G u a rd i a n ’s m o ti o n fo r s u

m m a ry ju d g m e n t. A c c or di n g l y , Iw ou l d a f f i r m t h e j u dg m e n t of t h e t ri a l c ou r t g r a n ti n g s u m m a r y j u dg m e n t i n f a vo r of T h e G u ardi an Li f e In s u r an ce C om pan y of A m er i ca.