Life Insurance Co. of North America v. Evans

No. 81-257 IN THE SUPREME COURT OF THE STATE OF MONTANA 1981 LIFE INSURAXCE COMPANY OF NORTH AMERICA, Petitioner and Appellant, JUDITH ANN EVANS, individually and as Personal Representative of the Estate of LORENZO LLOYD EVANS, Deceased., Respondent and Respondent. ORIGINAL PROCEEDING: Counsel of Record: For Appellant: Anderson, Brown, Gerbase, Cebull & Jones, Billings, Montana For Respondent: Douglas & Bostock, Libby, Montana Submitted on Briefs: July 2, 1981 Decided: November 6, 1981 Filed: h'O\' 6 - 1%? Mr. J u s t i c e Gene B. D a l y d e l i v e r e d t h e O p i n i o n o f t h e C o u r t . Honorable R u s s e l l E. Smith , a s e n i o r United S t a t e s D i s t r i c t J u d g e f o r t h e D i s t r i c t o f Montana, h a s c e r t i f i e d t o u s a q u e s t i o n of law i n which it a p p e a r s t h e r e a r e s u b s t a n - t i a l grounds f o r d i f f e r e n c e of opinion, t h e a d j u d i c a t i o n of which by t h i s C o u r t would m a t e r i a l l y a d v a n c e a d e c i s i o n i n federal litigation. The f o l l o w i n g q u e s t i o n s w e r e c e r t i f i e d : Are t h e d e c i s i o n s of law s e t down i n Kingsland v. Metropolitan Life I n s u r a n c e Co. (1934), 97 Mont. 558, 37 P.2d 3 3 5 , and S u l l i v a n v . Metropolitan L i f e I n s u r a n c e Co. ( 1 9 3 4 ) , 96 Mont. 254, 29 P.2d 1 0 4 6 , s t i l l l a w i n Montana? If t h e K i n g s l a n d and S u l l i v a n c a s e s s t i l l s t a t e t h e l a w i n Montana, a r e t h e d i f f e r e n c e s i n t h e l a n g u a g e o f t h e "exclusions" clauses sufficient to distinguish the policy involved here from those considered in Kinqsland and Sullivan? L o r e n z o Lloyd Evans l i v e d a t a n isolated location, known a s "Copper C r e e k , " f i f t y m i l e s from Libby, Montana, and twelve miles f r o m Noxon, Montana. He was a lawyer, admitted to practice in Montana, with offices in Libby. Evans k e p t v a r i o u s w i l d a n i m a l s and b i r d s a t h i s p l a c e o n Copper C r e e k , i n c l u d i n g a n e l e v e n - y e a r - o l d wolf which h e had r a i s e d from a pup. On t h e m o r n i n g o f J u n e 2 7 , 1 9 7 9 , L l o y d Evans was f e e d i n g h i s wolf when t h e wolf a t t a c k e d and b i t him on h i s r i g h t hand and w r i s t . Evans went b a c k t o t h e h o u s e , wrapped h i s hand w i t h a t o w e l , and s a t down. Within a period of approximately eight to fifteen m i n u t e s a f t e r t h e wolf a t t a c k , Evans i n d i c a t e d t o h i s w i f e t h a t t h e b i t e had p r e c i p i t a t e d a h e a r t a t t a c k and t h a t h e s h o u l d be d r i v e n t o a h o s p i t a l r i g h t away. Evans walked t o h i s c a r a n d l a i d down i n t h e b a c k s e a t . H i s w i f e had c a l l e d a n a m b u l a n c e , and when t h e y had t r a v e l e d a l i t t l e o v e r h a l f of the distance to Libby, they met the ambulance on the highway. Evans was transferred to the ambulance where o x y g e n was a d m i n i s t e r e d t o him, and h i s p u l s e was m o n i t o r e d . While i n t h e ambulance, and a f t e r a l a p s e o f a p p r o x i m a t e l y forty-five to sixty minutes following the wolf attack, Evans' pulse stopped, and he went into cardiac arrest. Oxygen and C . P . R . were a d m i n i s t e r e d , and Evans showed some s i g n s of l i f e when the ambulance arrived a t the hospital emergency room in Libby. Approximately fifteen minutes a f t e r a r r i v a l a t t h e h o s p i t a l , Lloyd Evans d i e d . L l o y d Evans had p r e v i o u s l y s u f f e r e d a h e a r t a t t a c k on April 4, 1979. He was hospitalized at the Veteran's Administration hospital in Spokane, Washington, for about three weeks. On A p r i l 25, 1979, h e was g i v e n a regular d i s c h a r g e and r e t u r n e d t o t h e c a r e of h i s physician, with t h e recommendation t h a t h e be i n h o u s e r e s t f o r a n o t h e r s i x weeks and g r a d u a l l y resume h i s p r e h o s p i t a l a c t i v i t i e s . Medical evidence i n d i c a t e s t h a t the immediate c a u s e o f Lloyd E v a n s ' d e a t h was h e a r t a t t a c k , but t h a t the heart a t t a c k was " t r i g g e r e d " by t h e wolf b i t e . The wolf b i t e was n o t s e v e r e enough, by i t s e l f , t o have caused t h e d e a t h of Evans. Lloyd Evans had applied for, and Life Insurance Company of North America had issued, a certain group voluntary accidental death and dismemberment insurance policy, No. OK-2598, in the principal sum of $50,000, e f f e c t i v e November 1, 1 9 7 2 . The p o l i c y was i n f u l l f o r c e and effect, according to its terms, on t h e d a t e of Lloyd Evans' d e a t h . The p o l i c y c o n t a i n e d t h i s l a n g u a g e : "[The i n s u r e d ] is i n s u r e d . . . asainst loss r e s u l t i n g d i r e c t l y and independently of a l l o t h e r c a u s e s f r o m b o d i l y i n j u r i e s c a u s e d by a c c i d e n t o c c u r r i n g w h i l e t h e p o l i c y is i n f o r c e a s t o the I n s u r e d , h e r e i n c a l l e d s u c h injuries. "EXCLUSIONS "The p o l i c y d o e s n o t c o v e r l o s s c a u s e d by o r r e s u l t i n g f r o m a n y o n e o r more o f t h e f o l l o w - ing : "(D) I l l n e s s , d i s e a s e . . . bodily infirmity o r a n y b a c t e r i a l i n f e c t i o n o t h e r t h a n bac- t e r i a l i n f e c t i o n o c c u r r i n g i n consequence of a n a c c i d e n t a l c u t o r wound." ( E m p h a s i s sup- plied.) The i s s u e h e r e i s w h e t h e r K i n g s l a n d v . Metropolitan L i f e I n s u r a n c e Co. ( 1 9 3 4 ) , 97 Mont. 558, 37 P.2d 3 3 5 , and S u l l i v a n v . M e t r o p o l i t a n L i f e I n s u r a n c e Co. ( 1 9 3 4 ) , 96 Mont. 254, 29 P.2d 1 0 4 6 , a r e s t i l l law i n t h e S t a t e o f Montana. A f t e r a review of t h e r u l e s i n t h e s e c a s e s , we a g r e e w i t h r e s p o n d e n t J u d i t h Evans that the reasoning and rules set down i n S u l l i v a n and K i n q s l a n d a r e s t r i c t and h a r s h . In Sullivan, the insured tripped over a piece of s h e e t m e t a l and f e l l , h i t t i n g h i s head. F i v e d a y s l a t e r he d i e d of a c e r e b r a l hemorrhage. E v i d e n c e was s u b m i t t e d a t the t r i a l that the i n s u r e d was s u f f e r i n g from h i g h blood pressure and arteriosclerosis at the time of the fall. Evidence a l s o i n d i c a t e d t h a t had a man n o t s u f f e r i n g f r o m high blood pressure and a r t e r i o s c l e r o s i s t r i p p e d o v e r the sheet metal, in a l l probability, no h e m o r r h a g e would h a v e resulted. The i n s u r a n c e p o l i c y i n S u l l i v a n p r o v i d e d c o v e r a g e i f the insured sustained "bodily injuries, s o l e l y through external violent and accidental means, resulting directly and independently of all other causes." The Court in S u l l i v a n admitted t h a t a reasonable scope of i n s u r a n c e was c o n t e m p l a t e d by the policy. Nevertheless, because of the c l e a r and u n e q u i v o c a l n a t u r e o f t h i s l a n g u a g e i n t h e p o l i c y , t h e C o u r t h e l d t h a t t h e r e would be no r e c o v e r y i f ". . . the i n s u r e d might s u f f e r an a c c i d e n t r e s u l t i n g i n d e a t h t o which disease or bodily infirmity contributed indirectly or partially . . ." S u l l i v a n , 29 P.2d a t 1052. Because t h e i n s u r e d was s u f f e r i n g f r o m a r t e r i o s c l e r o s i s , which c o n t r i - b u t e d t o and a c t i v e l y c o o p e r a t e d w i t h t h e a c c i d e n t t o c a u s e t h e i n s u r e d ' s d e a t h , t h e r e was no r e c o v e r y . I n Kingsland, t h e i n s u r e d had stepped onto a chair s i t t i n g on a n uneven c e m e n t s u r f a c e ; he l o s t h i s b a l a n c e and fell head first on the rough cement. The insured died shortly after the f a l l . The c a u s e o f the insured's death was d e s c r i b e d a s a r u p t u r e d a n e u r y s m o f t h e a o r t a , p r e c i p i - t a t e d by t h e f a l l and by s t r i k i n g h i s h e a d on t h e c e m e n t floor. The C o u r t i n K i n g s l a n d f i r s t l o o k e d t o t h e l a n g u a g e of t h e i n s u r a n c e p o l i c y which c o n t a i n e d t h e c o n d i t i o n t h a t d e a t h must be shown to result "solely through external, v i o l e n t and a c c i d e n t a l m e a n s . " Kingsland, 3 7 P.2d a t 337. The C o u r t t h e n r e a s o n e d t h a t t h e t e r m " p r o x i m a t e c a u s e " i s i n a p t i n t h i s c l a s s of c a s e s b e c a u s e " r e c o v e r y c a n be had only if death resulted 'solely' (not proximately) from injuries received through accidental means . I1 Kingsland, 37 P.2d at 337. According to the Court in Kinqsland, there could be no recovery if the insured's c o n d i t i o n was a c o n t r i b u t i n g c a u s e of death. If a pre- e x i s t i n g i n f i r m i t y w e r e shown, r e c o v e r y c o u l d o n l y b e had i f t h e a c c i d e n t a l i n j u r y was s u f f i c i e n t i n i t s e l f t o c a u s e t h e d e a t h o f a h e a l t h y man. The K i n q s l a n d C o u r t r e a s o n e d f u r t h e r t h a t i n S u l l i v a n the fall a l o n e was n o t s u f f i c i e n t t o c a u s e t h e insured's d e a t h , and h i s c o n d i t i o n was t h e r e f o r e a c o n t r i b u t i n g c a u s e . In contrast, b e c a u s e e v i d e n c e showed t h a t t h e f a l l o f the insured i n K i n g s l a n d was s u f f i c i e n t t o c a u s e t h e d e a t h o f t h e i n s u r e d , r e c o v e r y was g r a n t e d . The issue here is whether t h i s Court should still f o l l o w t h e r u l e s e t down i n K i n g s l a n d and S u l l i v a n t h a t i f a preexisting condition contributes to an insured's death, t h e r e c a n be no r e c o v e r y . Given t h e e x t r e m e h a r s h n e s s o f this rule and the liberal interpretation placed on such insurance policies in many jurisdictions today, we must o v e r r u l e t h e K i n g s l a n d and S u l l i v a n c a s e s t o t h e e x t e n t t h a t they hold t h a t t h e r e c a n b e no r e c o v e r y if a preexisting disease either directly or indirectly contributes to an insured's death. W a r e persuaded t h a t t h e b e t t e r r u l e f o r t h e i n t e r - e pretation of such insurance policies is the following: Where an accidental injury aggravates or triggers a pre- e x i s t i n g dormant d i s e a s e or p h y s i c a l i n f i r m i t y , t h e a c c i d e n t may be s a i d t o h a v e b e e n t h e p r o x i m a t e c a u s e o f t h e r e s u l t - i n g d i s a b i l i t y w i t h i n t h e t e r m s and meaning o f a n o r d i n a r y accident insurance policy. See, Boring v. Haynes (1972), 209 Kan. 413, 496 P.2d 1385; Carlson v. New York Life Insurance (1966), 76 Ill.App.2d 187, 222 N.E.2d 363; McMackin v. Great American Reserve Ins. Co. (1971), 22 Cal.App.3d 428, 99 C a l . R p t r . 227; Nash v . Prudential Ins. Co. o f America ( 1 9 7 4 ) , 39 Cal.App.3d 5 9 4 , 114 C a l . R p t r . 299; Brown v. State Mutual Life Insurance Company of America (La.App. 1 9 7 9 ) , 377 S o . 2 d 355; Zurich Ins. Co. v. Ruscoe (Miss. 1 9 6 7 ) , 203 S o . 2 d 305; Couey v . N a t i o n a l B e n e f i t L i f e I n s u r a n c e Company ( 1 9 6 7 ) , 77 N . M . 5 1 2 , 424 P.2d 793. For a d i s c u s s i o n o f c a s e s on t h i s m a t t e r , s e e 84 A.L.R.2d 176. The mere p r e s e n c e o f a p r e e x i s t i n g d i s e a s e o r i n f i r - m i t y w i l l no l o n g e r relieve the insurer from l i a b i l i t y in this state. R e c o v e r y may be had even though the disease a p p e a r s t o have a c t u a l l y c o n t r i b u t e d t o t h e c a u s e of d e a t h a s long a s t h e a c c i d e n t sets i n motion t h e c h a i n of e v e n t s leading t o death, or if i t is t h e p r i m e o r moving c a u s e . S e e , B r o o k s v . M e t r o p o l i t a n L i f e I n s . Co. ( 1 9 4 5 ) , 27 C a l . 2 d 305, 1 6 3 P.2d 689; Kater v. United Insurance Company of America ( 1 9 6 0 ) , 22 I l l . A p p . 2 d 2 2 , 1 6 5 N.E.2d 74. A mere f r a i l c o n d i t i o n s h o u l d n o t r e l i e v e a n i n s u r e r from l i a b i l i t y . A s Chief J u s t i c e Cardozo n o t e d i n S i l v e r - s t e i n v . M e t r o p o l i t a n L i f e Co. ( 1 9 3 0 ) , 254 N . Y . 81, 171 N.E. 914, an insurance p o l i c y is not accepted with t h e thought that i t s coverage i s t o be r e s t r i c t e d t o a n A p p o l l o o r a Hercules. W e agree with t h e following language f r o m Couey v . N a t i o n a l B e n e f i t L i f e I n s u r a n c e Company, s u p r a , 424 P.2d a t 795: " I n our view of t h e c a s e , e v e r y i n j u r y o r d i s e a s e s u f f e r e d by a p e r s o n f r o m h i s b i r t h t o t h e d a t e of a p a r t i c u l a r i n j u r y c o n t r i - b u t e s t o some d e g r e e t o t h e c o n d i t i o n t h e n present. N e c e s s a r i l y , by t h e w o r d s u s e d i n t h e p o l i c y it c o u l d n o t have been i n t e n d e d t h a t payment would be d u e o n l y when t h e a c c i d e n t was l i t e r a l l y t h e s o l e c a u s e o f hospitalization. I f a p e r s o n had s u f f e r e d a b r o k e n l e g which had h e a l e d p e r f e c t l y f i v e y e a r s b e f o r e , and a s e c o n d a c c i d e n t w h e r e i n t h e l e g had b r o k e n a t t h e same p l a c e , c o u l d it be said that the condition resulting from the first break did not in any way contribute to the second break? We think the answer is obvious and, under defendants' theory, plain- tiff would not be entitled to recover. In our view, this application of the language of the policy is entirely too restrictive and would be unreasonable. Other courts have agreed . . Likewise, the rulings of Sullivan and Kingsland were too restrictive, and any rules in these cases must be overruled to the extent they are inconsistent with this opinion. Since we have held that Kingsland and Sullivan no longer state the law in Montana, we need not discuss the second 4 l' question certified to us. Justice V We concur: ? A 4 $ j Chief Justice wdw