Opinion ID: 1693495
Heading Depth: 1
Heading Rank: 3

Heading: was the defendant entitled to a peremptory instruction on the issue of punitive damages?

Text: Punitive damages are not recoverable for breach of contract unless such breach is attended by intentional wrong, insult, abuse, or such gross negligence that amounts to an independent tort. Aetna Casualty and Surety Company v. Steele, 373 So.2d 797 (Miss. 1979); Bellefonte Insurance Company v. Griffin, 358 So.2d 387 (Miss. 1978); New Hampshire Insurance Company v. Smith, 357 So.2d 119 (Miss. 1978); Standard Life Insurance Company of Indiana v. Veal, 354 So.2d 239 (Miss. 1977); Progressive Casualty Insurance Company v. Keyes, 317 So.2d 396 (Miss. 1975). In Veal, supra, we affirmed an award for punitive damages for failing to pay a legitimate claim following the death of an insured, but held that if an insurance company had a legitimate or arguable reason for failing to pay a claim, punitive damages would not lie. In this case defendant denied liability on the ground that it had cancelled the certificate issued Kelley before his death and that it had the absolute right to cancel the certificate under the terms of its master policy. Our holding in this case under Part II that defendant was estopped from asserting the cancellation provision of its master policy is the first time this Court has addressed the question. Defendant had the right to interpose its defense, and although we have decided defendant was liable on its policy, we conclude there was an arguable reason for failing to pay the claim; therefore, the question of punitive damages should not have been submitted to the jury. The trial court should have granted a peremptory instruction for the defendant on the question of punitive damages. For the reasons stated, we affirm the judgment of the trial court awarding actual damages in the amount of $3,926.88, and reverse on the question of punitive damages, holding that the action of defendant was not attended by an intentional wrong, insult, abuse, or such gross negligence that it amounted to an independent tort. AFFIRMED IN PART, REVERSED IN PART AND RENDERED. PATTERSON, C.J., ROBERTSON, P.J., and WALKER, BROOM, LEE, BOWLING and COFER, JJ., concur. SMITH, P.J., takes no part.