USCA1 Opinion
United States Court of Appeals
For the First Circuit
____________________
No. 97-1949
CECILE E. VICKERS, INDIVIDUALLY
AND AS EXECUTRIX OF THE
ESTATE OF CHARLES E. VICKERS, JR.,
Plaintiff, Appellee,
v.
BOSTON MUTUAL LIFE INSURANCE COMPANY,
Defendant, Appellant.
____________________
APPEAL FROM THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS
[Hon. Zachary R. Karol, U.S. Magistrate Judge] _____________________
[Hon. Reginald C. Lindsay, U.S. District Judge] ___________________
[Hon. William G. Young, U.S. District Judge] ___________________
____________________
Before
Torruella, Chief Judge, ___________
Aldrich, Senior Circuit Judge, ____________________
and Lynch, Circuit Judge. _____________
____________________
Ralph C. Copeland with whom Copeland & Hession was on brief for _________________ ___________________
appellant.
John A. Mavricos with whom Christopher, Hays, Wojcik & Mavricos _________________ _____________________________________
was on brief for appellee.
____________________
February 2, 1998
____________________
ALDRICH, Senior Circuit Judge. In August, 1992, ____________________
Charles E. Vickers, Jr., (Vickers), an employee insured under
an ERISA, 29 U.S.C. 1001 et seq., group policy covering,
within limits, accidental death, was fatally injured in a
one-car automobile crash in Arizona. Plaintiff executrix
sued in the United States District Court for the District of
Massachusetts and was awarded the death benefit and
attorney's fees on a motion for summary judgment. Defendant
Boston Mutual Life Insurance Company (Company), claiming the
death was not covered by the policy, appeals. We affirm.
The Facts _________
Vickers, a 55 year old male, was driving alone when
his car went off the road on a curve, vaulted over a 15 foot
drop, and struck a tree with great force. He died within a
half hour. The Arizona Medical Examiner performed an autopsy
the following day and listed a number of diagnoses, including
"coronary arteriosclerosis, occlusive, severe," and much
physical trauma. He gave as the "Cause of Death:"
Multiple blunt force traumatic injuries
secondary to motor vehicle accident
precipitated by acute coronary
insufficiency.
For "Manner of Death," choosing between "Natural" and
"Accident," he chose "Accident." Whether this was an
accident within the policy terms, however, depends upon the
policy terms. The undisputed facts are that the crash was
caused by Vicker's heart attack, but the sole physiological
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cause of death was the physical injury sustained in the
crash. The heart attack alone would not have been fatal.
We quote from the policy terms.
THE POLICY
We agree to pay benefits for loss
from bodily injuries:
a) caused by an accident . . . ; and
b) which, directly and from no other
causes, result in a covered loss.
We will not pay benefits if the loss
was caused by:
a) sickness, disease, or bodily
infirmity; or
b) any of the Exclusions listed on
Page (sic) 2-3.
. . . .
THIS IS A LIMITED ACCIDENT POLICY
WHICH DOES NOT PAY BENEFITS FOR LOSS FROM SICKNESS
. . . .
EXCLUSIONS __________
No benefit will be paid for loss
resulting from:
. . . .
6. Sickness, disease or bodily
infirmity.
The basic arguments are these: Plaintiff says the
policy pays for "loss," viz., death, from bodily injuries
that were caused by an accident, and the exclusion does not
apply because the heart attack caused the accident rather
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than the death. The Company says the crash was not an
accident, and that even if it was, the bodily injuries that
caused the loss resulted from an accident caused by the heart
attack, so that the basic cause of the loss was the diseased
heart.
We can easily dispose of the Company's first
argument. In its view, and relying on Wickman v. _______
Northwestern National Insurance Co., 908 F.2d 1077 (1st ______________________________________
Cir.), cert. denied, 498 U.S. 1013 (1990), the crash was not ____________
an "accident," as "a reasonable person in the decedent's
shoes should have foreseen that if one suffers a heart attack
while driving and becomes unconscious, loss of control of the
vehicle is inevitable and would likely result in serious
bodily injury and possibly death." Perhaps, but some
subjective expectation of a heart attack would be required,
and there was none here. The Company's argument that there
was no accident is patently frivolous.
Otherwise, to a degree, overlooking legal
precedents, we can understand both parties. Surely Vickers'
family thinks of him as having been killed in an automobile
accident. But the Company says, on plaintiff's theory, what
is the point of the two policy provisions denying coverage
for and excluding loss "caused by" and "resulting from"
"disease or bodily infirmity"? There was no need for those
disclaimers in an accident policy unless there was
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contemplated a disease-connected accident to begin with.
Manifestly there would have been no accident and no loss
here, were it not for the insured's diseased heart.
On reflection, as a matter of pure logic, quite
possibly this issue could be answered in the Company's favor.
But, if so, this raises another question. Why did the
Company write a policy that called for the services of a
logician instead of relying on "plain meanings . . . which
comport with the interpretations given by the average
person"? Wickman, 908 F.2d at 1084. We suggest two reasons. _______
(1) Inefficiency; poor, ill-informed, draftsmanship. (2) A
well-advised drafter, persuaded by the sales-department to
simplify and not use intimidating language.1 Neither reflect
well on the Company.
The Law _______
We held in Wickman that the terms of an ERISA _______
policy are to be interpreted under principles of federal
____________________
1. We can understand that sales agents might not like the
policy wording in Sekel v. Aetna Life Insurance Co., 704 F.2d _____ ________________________
1335, 1336-37 (5th Cir. 1983) (applying Texas law and
reversing an award to the insured),
The insurance provided under this Title
does not include, and no payment shall be
made for, any loss resulting from any
injury caused or contributed to by, or as
a consequence of, any of the following
excluded risks, even though the proximate
or precipitating cause of loss is
accidental bodily injury: (a) bodily or
mental infirmity; or (b) disease . . . .
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substantive law. 908 F.2d at 1084; see also Pilot Life Ins. ________ ________________
Co. v. Dedeaux, 481 U.S. 41, 56 (1987). In view of the still ___ _______
"formative stage" of federal law here we apply "common-sense
canons of contract interpretation" and borrow the "best
reasoned" concepts from state law. 908 F.2d at 1084. If
this Massachusetts insurer's draftsman had looked to
Massachusetts law, he should have found the following:
In Bohaker v. Travelers Insurance Co., 215 Mass. 32 _______ _______________________
(1913), the insured, delirious from typhoid fever, was
temporarily left alone in an upstairs bedroom. He was
thereafter found, fatally injured, on the ground outside an
open window. The policy insured against "bodily injuries,
effected directly or independently of all other causes, __________________________________________________
through external, violent and accidental means." Id. at 32 ___
(emphasis added). The court said,
A sick man may be the subject of an
accident, which but for his sickness
would not have befallen him. One may
meet his death by falling into imminent
danger in a faint or in an attack of
epilepsy. But such an event commonly has
been held to be the result of accident
rather than of disease.
Id. at 34. The court held for the insured. To look at ___
common understanding is a fundamental principle.
In Vahey v. John Hancock Mutual Life Insurance Co., _____ ______________________________________
355 Mass. 421 (1969), the insured, while walking on the
street, had a major epileptic seizure, causing him to fall to
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the pavement, striking his head. Death came from a fractured
skull and cranial bleeding. The policy provided:
No benefit will be payable under the
"Accidental Death Benefit" provision if
the Insured's death results, directly or ___________
indirectly, or wholly or partially, from: __________
(1) any infection or bodily or mental
infirmity or disease existing before or
commencing after the accidental injury
. . . .
Id. at 422 n.1 (emphasis added). The court held for the ___
defendant. Thus two, more exactly, one little word.
Defendant would have it that "directly and from no
other causes" is "not only analogous to 'indirect' (sic) but __________
is broader and more extensive." Our logician might agree.
But why analogies? Why overlook Bohaker, and neglect Vahey? _______ _____
Defendant gains nothing by saying, broadly,
[P]roximate cause . . . focuses on the
foreseeability between the event and the
injury caused as a result of the event
and does not require a direct connection.
. . . . .
[T]he nexus between the heart attack and
the bodily injuries suffered from the
crash was immediate and should be viewed
as one entire event even though the heart
attack was not the physiological cause of
the decedent's death.
This is no answer when we are interpreting the word "cause"
in a layman's insurance policy.
Attorney's Fees _______________
We have gone to this length, in what would normally
call for a short and routine affirmance, because defendant
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appeals from the court's awarding prejudgment interest and
attorney's fees. We review this award for abuse of
discretion. See Cottrill v. Sparrow, Johnson & Ursillo, ___ ________ _____________________________
Inc., 100 F.3d 220, 223 (1st Cir. 1996). This being a ____
contract action, with liquidated damages, defendant cannot
object to interest: it has had the use of promised money.
Cf. id. at 224. As to fees, should defendant have known ___ ___
there was no merit in its defense? See id. at 225. Even ___ ___
now, as against the exhaustive list of opposing state cases
cited in the diligent magistrate judge's opinion, not to
mention the Massachusetts cases, defendant has found no case
directly in its favor. We cannot fault the district court's
award of attorney's fees under Cottrill as an abuse of ________
discretion.
The $20,000 fee, which at, say, $200 an hour, comes
to 100 hours, possibly suggests the standard contingency fee
figure2 rather than the actual time needfully spent. We
approve it, but shall add nothing for the further briefing
needed for this court.
Affirmed, with double costs. ____________________________
____________________
2. The death benefit was $50,000.
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