Opinion ID: 2519893
Heading Depth: 1
Heading Rank: 7

Heading: Ratification and Waiver

Text: Primary Health contends that the district court was not authorized to conclude that Primary Health had ratified the contract entered into under duress because ratification was not raised as an affirmative defense by the State. The district court's conclusion that Primary Health had ratified the contract led to the dismissal of the claim for duress. The purpose of the rule (I.R.C.P.8(c)) requiring affirmative defenses to be pleaded is to alert the parties concerning the issues of fact to be tried and to afford them an opportunity to meet those defenses. Williams v. Paxton, 98 Idaho 155, 559 P.2d 1123 (1976). The district court properly recognized that, although the issue of ratification is normally a question for the jury, see Clearwater Constr. v. Wickes Forest Industries, 108 Idaho 132, 697 P.2d 1146 (1985), where the evidence is uncontradicted, ratification should be determined by the court as a matter of law. Id. In this case, there was uncontradicted evidence that Primary Health accepted Ms. Huffman as a member despite her late enrollment, received premiums, and paid claims on her behalf until the expiration of the contract year, only after which it asserted economic duress. An insurer cannot be deemed to have waived a right based upon material facts, the existence of which were unknown to it. Wells v. United States Life Ins. Co., 119 Idaho 160-164, 804 P.2d 333, 337 (Ct. App.1991). Waiver is a question of intent involving a mixed question of law and fact. Seaport Citizens Bank v. Dippel, 112 Idaho 736, 739, 735 P.2d 1047 (Ct.App.1987). The evidence, including the letter from counsel, demonstrated that Primary Health was aware that it was not contractually bound to accept Ms. Huffman as a late enrollee. Its subsequent actions in extending open enrollment benefits to Ms. Huffman based on representations by Cynthia Dickinson of an unwritten policy that allowed for late enrollment under certain circumstances, without a reservation of rights, is tantamount to a waiver.