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eBook details

• Title: Barbara Caroline Thomas v. Principal
• Author : Supreme Court of Alabama
• Release Date : January 03, 1990
• Genre: Law,Books,Professional & Technical,
• Pages : * pages
• Size : 79 KB

Description

Barbara Caroline Thomas sued Principal Financial Group, d/b/a Principal Mutual Life Insurance Company ("Principal Mutual"),
seeking damages for breach of contract and bad faith refusal to pay insurance benefits. At trial, Ms. Thomas's motion for
a directed verdict on the contract claim and Principal Mutual's motion for a directed verdict on both claims were denied and
the case was submitted to a jury, which awarded Ms. Thomas $1,000 on her breach of contract claim and $750,000 on her bad
faith claim. The trial court entered a judgment on that verdict. Principal Mutual moved for a judgment notwithstanding the
verdict on both claims or, in the alternative, a new trial. The trial court entered for Principal Mutual a judgment notwithstanding
the verdict on the bad faith claim, but left intact the judgment for Ms. Thomas on the contract claim. Ms. Thomas appealed
from the judgment for Principal Mutual on the bad faith claim, and Principal Mutual cross-appealed from the judgment for Ms.
Thomas on the contract claim. We affirm the judgment for Ms. Thomas on the contract claim; we reverse the judgment for Principal
Mutual on the bad faith claim and remand the case with directions. The University of South Alabama Medical Center ("the University") contracted with Principal Mutual for group life insurance
for its employees and their dependent children. The policy reads, in pertinent part, as follows:

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