Opinion ID: 2001572
Heading Depth: 2
Heading Rank: 2

Heading: Whether the Verdict May Be Affirmed With Respect to Subclasses

Text: Having determined that the certification of the nationwide contract class should be reversed, we note that there remains a question whether the jury's breach of contract verdict may be affirmed with regard to any subclass comprised of policyholders who were insured under any of the relevant individual policy forms. For the reasons set forth below, we answer this question in the negative. We note initially that there are serious questions as to whether the breach of contract verdict may be upheld for any group of class members. Under the verdict form given by the circuit court, the jury found that defendant State Farm failed to perform its obligations under the contract and breached its contract with the plaintiff class. (Emphases added.) This verdict form followed naturally from the jury instructions, which stated that there was a single contract at issue with a uniform contractual obligation. However, we have concluded, as a matter of law, that this was error. There was no single contract. Rather, there were multiple policy forms which differed materially. On its face, therefore, the verdict is improper. It included no finding, for example, that State Farm breached the policy form containing the you agree language, which allowed the practice that plaintiffs claim constituted the breach. Indeed, there could not have been such a finding. The jury was never instructed as to the you agree provision. Nor was there any finding in the verdict that State Farm breached its contractual obligation in the Massachusetts policies or the assigned risk policies. Once again, the jury was not instructed as to these policies. The verdict simply stated, incorrectly, that State Farm breached a single contract with the plaintiff class. Accordingly, the breach of contract verdict cannot be upheld with respect to any subclass of policyholders insured under any of the individual policy forms at issue. However, we do not decide this case on this ground alone. Instead, we also look at the individual relevant policy forms and consider whether plaintiffs established a breach of any of them. We also consider whether plaintiffs established damages. For the reasons set forth below, we answer these questions in the negative.