Equitable Life & Casualty Insurance Co. v. Virgil N. Lee, Equitable Life & Casualty Insurance Co. v. Margaret L. Pagett

Defendant appeals from the two judgments of the United States District Court for the District of Oregon. Both are diversity cases involving fraud in the sale of insurance policies. Plaintiff Lee asked for the sum of $3,000 general damages, and the sum of $10,000 punitive damages. Plaintiff Pagett sought $1500 general damages, and $10,000 punitive damages. The Court, sitting as finder of the facts, resolved the issues in plaintiffs’ favor and allowed each of them substantial punitive damages in addition to general damages. The facts of these cases, as well as the questions of law, are substantially the same and therefore they will be discussed together.

We have examined all of the defendant’s contentions, find none of them sound, hence we affirm both judgments of the District Court.

Plaintiff Lee was first contacted by defendant’s sales agent, Leo Rognlie, late in 1955 or early in 1956. Dr. Lee testified that during the next few weeks he was also contacted by O. R. Myers, a sales agent of defendant, and Walter A. Reklau, General Sales Manager for the Portland office of the defendant. During the course of these visits he was informed of a profit-sharing life insurance policy, to…