Opinion ID: 1969865
Heading Depth: 1
Heading Rank: 3

Heading: Reasonable Reliance Material Factual Issue

Text: After ordering a new trial, the Superior Court granted Aetna's Motion for Summary Judgment on the ground that WTC could not establish that its reliance on Aetna's misrepresentation was justifiable. In its earlier opinion granting Aetna's prior Motion for Judgment as a Matter of Law, however, the Superior Court had acknowledged that the language of the original policy, along with the similarities between registered and express mail, could lead a jury rationally to conclude that WTC was justified in relying on an assurance by an agent of Aetna that shipments by express mail would also be covered. The WTC policy with Aetna provides that precious metals are insured if they are shipped by registered mail. The policy does not define registered mail. In fact, the express mail endorsement for securities states that the term registered mail can include USPS Express Mail under certain circumstances. Nevertheless, the Superior Court granted Aetna's Motion for Summary Judgment. It concluded that WTC's reliance upon the prior misrepresentations about coverage for USPS Express Mail shipments of precious metals was not justifiable after Aetna issued the express mail endorsement for shipments of securities. Summary judgment may be granted where the record shows 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. Super.Ct.Civ.R. 56(c). The scope of review on appeal of a decision on summary judgment is de novo. Burkhart v. Davies, Del.Supr., 602 A.2d 56, 59 (1991) (citing Celotex Corp. v. Catrett, 477 U.S. 317, 322-23, 106 S.Ct. 2548, 2552-53, 91 L.Ed.2d 265 (1986)), cert. denied, 504 U.S. 912, 112 S.Ct. 1946, 118 L.Ed.2d 551 (1992). WTC contends that, although the terms of the insurance policy provide coverage if precious metals are shipped by registered mail, WTC was reasonable in relying upon Aetna officer Wisnewski's oral misrepresentations that shipments by USPS Express Mail were also covered by the policy. WTC asserts that issues of negligence are not usually susceptible to summary judgment adjudication because the elements of the claim are ordinarily issues of fact for the jury. Faircloth v. Rash, Del.Supr., 317 A.2d 871, 871 (1974). We agree. Whether WTC's reliance on a misrepresentation was reasonable is a question for the jury. Lock v. Schreppler, Del.Super., 426 A.2d 856 (1981); accord Pearson v. Simmonds Precision Prods., Inc., 160 Vt. 168, 624 A.2d 1134 (1993) (a jury was entitled to find an employer liable for negligent misrepresentations about the terms of employment, despite contractual disclaimers in a written employment contract); Silva v. Stevens, 156 Vt. 94, 589 A.2d 852 (1991) (as is provision in contract for sale of house where buyers relied on oral misrepresentations by sellers does not defeat a negligent misrepresentation claim as a matter of law). Therefore, the judgment entered summarily in favor of Aetna must be reversed.