Mason v. Mercury Casualty Co.

Appellant’s car was burglarized sometime between 10 p.m. on December 31, 1971, and 6 a.m. of the following day. Appellant sued respondent Mercury Casualty Company (Mercury), appellant’s insurer, and in his first cause of action prayed for compensatory damages in the amount of $1,000, respondent having denied liability on the ground that appellant’s policy had lapsed. In the second cause of action of his complaint appellant asked for punitive damages in the amount of $25,000 on the ground that Mercury had wilfully and wantonly breached its fiduciary relationship with appellant by refusing payment on the first cause of action for the reason indicated.

The essential facts are undisputed. The insurance policy purchased by appellant from Mercury was in effect for the period “from 12-31-70 to 12-31-71.” On or about December 2, 1971, a renewal notice transmitted by Mercury was received by appellant; the notice stated that a “renewal request” from appellant had to be received by Mercury before the policy could be renewed. On December 31, 1971, but after 12:01 a.m. of December 30, 1971, appellant’s mother posted a check with the renewal request above referred to. They were not…