Laing

This is an appeal by Occidental Life Insurance Company of California from a judgment on a group major medical expense insurance policy. Plaintiff Lester Laing sued for cash benefits under the policy as written and, alternatively, to reform the policy by deleting from it two exclusionary provisions which Occidental contended prevented recovery. The first cause of action—which was based on the policy as written—was tried by jury, and a finding was made for the plaintiff. A special interrogatory was submitted to the jury relating to the reformation count; the matter was tried by the trial judge who also entered judgment in favor of plaintiff on that issue.

Plaintiff Laing and Hank Thibodeau, originally as partners and later as a corporation (La Deau Manufacturing Company), engaged in the manufacture of continuous hinges, with Thibodeau primarily concerned with administration and sales, and with Laing concerned with managing the plant. Walter Norris, and later Ray Needham, employees of Quisenberry Insurance Agency, negotiated with the La Deau Manufacturing Company on group insurance; these negotiations resulted in La Deau obtaining from Cal-Western Insurance Co. a group policy.…