147 So. 3d 374
Miss. Ct. App.2014Background
- Ferguson sued Farm Bureau in Hancock County for breach of contract and bad-faith failure to pay.
- Injury occurred January 21, 2008 on Wilson’s farm; Wilson’s policy had $50,000 employer’s liability limit.
- Farm Bureau paid $10,000 MedPay; offered $50,000 under liability coverage but attached lien/waiver conditions.
- March 26, 2008 letter offered $50,000 and medical-lien waiver; no clear acceptance.
- Ferguson filed bankruptcy in 2010; later sought payment of $50,000 directly to him; complaint filed October 2012; court granted summary judgment as time-barred.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the cause of action accrue? | Ferguson argues accrual occurred when FM breached in 2009. | Farm Bureau argues accrual was January 21, 2008. | Accrual occurred when injury happened; 2011/2012 filing untimely. |
| Was there a contract between Ferguson and Farm Bureau? | There was an offer/acceptance creating a contract. | No contract formed; Ferguson refused to sign, lack of consideration. | No valid contract formed; no breach after 2009. |
| Is direct-action against insurer applicable here? | Filed as third-party against insurer seeking payment. | Direct action allowed only for declaratory-coverage issues; not here. | Not a direct-action problem; ultimately affirming time-bar. |
| Did Ferguson’s September 2011 demand constitute acceptance of an offer? | Demonstrates acceptance of Farm Bureau’s settlement. | No consideration and no prior contract; no acceptance. | September 2011 demand did not form a contract; no tolling. |
| Did Rule 59 relief affect the outcome? | Rule 59 relief could reopen the merits. | Relief denied; no genuine material facts to create a new contract. | Rule 59 relief properly denied; summary judgment affirmed. |
Key Cases Cited
- Weathers v. Metro. Life Ins. Co., 14 So. 3d 688 (Miss. 2009) (accrual when the right to sue vests; three-year period applies)
- Bullard v. Guardian Life Ins. Co. of Am., 941 So. 2d 812 (Miss. 2006) (accrual and elements of a tort action)
- Caves v. Yarbrough, 991 So.2d 142 (Miss. 2008) (elements needed for accrual of a claim)
- Heritage Bldg. Prop. LLC v. Prime Income Asset Mgmt. Inc., 43 So.3d 1138 (Miss. Ct. App. 2009) (contract formation requires offer and acceptance with consideration)
- Lowndes Coop. Ass’n v. Lipsey, 126 So.2d 276 (Miss. 1961) (consideration necessary to form a contract)