Court Opinion

ID: 9684284
Source: CourtListenerOpinion
Date Created: 2023-08-24 13:52:34.0129+00
Date Added: 2024-06-11T18:17:54.679557
License: Public Domain

Robert J. Gladwin, Judge, dissenting. I dissent from the majority’s opinion. In reviewing summary-judgment cases, we need only decide if the grant of summary judgment was appropriate based on whether the evidentiary items presented by the moving party in support of the motion left a material question of fact unanswered. National Union Fire Ins. Co. v. Guardtronic, Inc., 76 Ark. App. 313, 64 S.W.3d 779 (2002). Once the moving party has established a prima facie entitlement to summary judgment, the burden shifts to the nonmoving party to meet proof with proof and demonstrate the existence of material fact. Little Rock Elec. Contractors, Inc. v. Entergy Corp., 79 Ark. App. 337, 87 S.W.3d 842 (2002). During the insurance application process, the agent asked Neill a series of questions and entered the answers into his computer. Although Neill was never asked whether he had sustained any previous losses due to fire, the agent entered “none” in a box headed “past losses.” The application was printed and contained the following language: “I hereby declare that the facts stated in the above application are true and request the company to issue the insurance and any renewals thereof in reliance thereon.” Neill signed on a line that required the personal signature of the applicant. Nationwide issued a policy insuring Neill’s mobile home. The mobile home burned, and it was at that time that the investigators for Nationwide first learned of Neill’s three prior losses due to fire. Nationwide denied coverage based upon the misrepresentation in the application. It is well established in Arkansas that one is bound under the law to know the contents of a paper signed by him, and he cannot excuse himself by saying he did not know what the papers contained. Carmichael v. Nationwide Life Ins. Co., 305 Ark. 549, 810 S.W.2d 39 (1991); National Union Fire Ins. Co. v. Guaritronic, Inc., supra. In Banks v. Evans, 347 Ark. 383, 64 S.W.3d 746 (2002), the supreme court stated that it is a rule of general application that one is bound to know the content of a document one signs, and if the signer has had the opportunity to read it before he signs it, he cannot escape the obligations imposed by the document by merely stating that it was signed without reading it. Further, in signing the application, Neill requested that Nationwide rely on the answers given in the application to issue the insurance policy. There is nothing ambiguous or misleading about the words “past losses” and “none” which appear just inches above Neill’s signature. Fie declared that the facts in the application were true when they were not, and Nationwide rightfully relied on that declaration. The materiality to the risk of a fact misrepresented, omitted, or concealed is a question of fact so long as the matter is debatable. It is a question of law when the materiality to the risk is so obvious that a contrary inference is not permissible. Old Republic Ins. Co. v. Alexander, 245 Ark. 1029, 436 S.W.2d 829 (1969). In obtaining property insurance, there can be no doubt as to the materiality of three prior losses due to fire. Appellee established a prima facie entitlement to summary judgment, and appellant failed to meet proof with proof. There was no material question of fact left unanswered. Therefore, I believe that the trial court was correct in granting summary judgment. I would affirm. Neal, J. joins.