Opinion ID: 201480
Heading Depth: 2
Heading Rank: 1

Heading: The Grant of Guardian's Motion for Summary Judgment

Text: 13 We review the grant of a motion for summary judgment de novo. GTE Wireless, Inc. v. Cellexis Int'l, Inc., 341 F.3d 1, 4 (1st Cir.2003). Summary judgment is appropriate only if the record reveals that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law. Fed.R.Civ.P. 56(c). We may affirm a grant of summary judgment on any ground supported by the record. See Geffon v. Micrion Corp., 249 F.3d 29, 35 (1st Cir.2001). 14 The district court granted Guardian's motion for summary judgment based on its finding that, under Mass. Gen. Laws ch. 175, § 110B, 14 Ralph's policy automatically terminated when he failed to pay the December 2000 premium within three months of its due date. We think that the district court was wrong to interpret section 110B as providing for automatic termination of a policy after three months for nonpayment of a premium. We read the statute as providing a degree of protection for the insured by putting limits on an insurance company's contractual ability to cancel a policy based on nonpayment of a premium; we do not read it as providing for termination as a matter of law. Still, the statute does not prohibit an insurance company from terminating a policy — in accordance with the policy's terms — for nonpayment of a premium. Rather, it simply provides that a policy cannot be terminated for nonpayment of a premium until three months after the date on which the premium was due (unless notice was sent in accordance with the statute). See supra note 7. 15 Here, the policy stated that it would terminate due to a missed premium payment: The payment of any premium will not continue this policy in force beyond the date when the next premium is due.... 15 And, starting with the December 28, 2000 payment, Ralph missed four consecutive premium payments and did not attempt to tender a late payment until November of 2001. Thus, regardless of whether Guardian sent notice of the December 28, 2000 payment deadline, the policy terminated pursuant to its terms on March 28, 2001 — three months after the due date of the first missed premium and well before Ralph attempted to tender a late payment in November of that year. 16 16 Ralph argues that Guardian should be estopped from terminating the policy pursuant to his nonpayment of the December 28, 2000 premium because he relied on Guardian to send notices of premium payment deadlines before making such payments 17 and Guardian failed to send proper notice of the December 28, 2000 deadline. 18 To establish that Guardian should be estopped from terminating the policy due to the missed premium, Ralph must convince us that, among other things, there is an equitable defense available to an insured who violates a contractual obligation and he acted reasonably in relying on Guardian to remind him of the December 28, 2000 payment deadline before making that payment. See Turnpike Motors, Inc. v. Newbury Group, Inc., 413 Mass. 119, 596 N.E.2d 989, 993 (1992) (It is ... necessary ... that the reliance of the party seeking the benefit of estoppel must have been reasonable.). 17 We think that even if there were an equitable defense available, Ralph would not be entitled to invoke it because his reliance on Guardian to remind him of the December 28, 2000 payment deadline was unreasonable. Ralph missed four consecutive quarterly payments (and, in so doing, failed to tender a premium payment for more than a year) due to his claimed reliance on Guardian. Ralph's reliance was patently unreasonable, and therefore, he would not be entitled to benefit from an equitable remedy even if one were available. 18 Because the policy terminated according to its terms on March 28, 2001 due to a missed premium payment (regardless of whether Guardian sent suitable notice of the payment deadline), Ralph's claims, other than his estoppel claim, fail. And, because Ralph cannot show that his failure to pay the missed premium was reasonable, his estoppel claim likewise fails. The grant of Guardian's motion for summary judgment is affirmed. 19