United Services Automobile Ass'n v. Lisanby
2010 Miss. LEXIS 615
Miss.2010Background
- USAA insured Lisanbys’ Pascagoula home; Katrina caused extensive wind and flood damage but insurer paid only $46,354.21 under homeowners policy, alleging most damage was storm surge (excluded).
- Lisanbys sued for breach of contract, emotional distress, punitive damages, and fees; jury awarded about $909,641 in compensatory damages; judge directed verdict on punitive damages and awarded fees to plaintiffs.
- Key expert Sinno testified wind damage occurred before flood, causing internal pressure and damage to the first floor; USAA’s expert Smith attributed damage to storm surge (water).
- Litigation history included post-trial awards of $302,920.44 in attorneys’ fees and $211,069.47 in litigation expenses to plaintiffs; USAA appealed on multiple grounds.
- Question presented included whether wind damage supported the verdict, whether emotional distress/fees were proper absent no-bad-faith denial, and whether venue, evidentiary rulings, or mistrial issues require reversal.
- Court affirmed breach-of-contract judgment, but reversed and rendered on extracontractual damages (emotional distress, fees, and expenses) due to arguable basis for denial of the claim.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether wind damage evidence supported the verdict. | Lisanbys rely on Sinno; wind caused most damage. | USAA showed storm surge caused the loss; wind not sole cause. | Sufficient wind-damage evidence supported the verdict; JNOV not warranted. |
| Whether emotional distress damages and attorneys’ fees were proper absent bad faith. | USAA lacked arguable basis for denial; bad faith shown. | USAA had arguable basis for denial; no bad faith. | Emotional distress and fees not recoverable; reversed and rendered in favor of USAA on these claims. |
| Whether replacement-cost evidence was improperly admitted. | Replacement costs essential to determine actual cash value. | Policy limits allow actual cash value; recovery not solely replacement costs. | Admission of replacement-cost evidence not an abuse of discretion; CV value supported by evidence. |
| Whether denial of change of venue was an abuse of discretion. | Change venue necessary due to pervasive Katrina-related bias. | Voir dire sufficient; no specific, case-related prejudice shown. | No abuse; trial court properly denied change of venue. |
| Whether mistrial was warranted due to improper arguments and media interference. | Closing and interview statements tainted trial. | Judge instructed to disregard; no serious prejudice; mistrial not warranted. | Mistrial not warranted; judge properly instructed jurors to disregard improper remarks. |
Key Cases Cited
- United States Fidelity & Guaranty Co. v. Martin, 998 So.2d 956 (Miss. 2008) (JNOV standard: de novo review for legal sufficiency of evidence)
- Adcock v. Miss. Transportation Comm'n, 981 So.2d 942 (Miss. 2008) (JNOV and sufficiency standards applied in context of appellate review)
- White v. Stewman, 932 So.2d 27 (Miss. 2006) (abuse-of-discretion standard for trial rulings)
- Windmon v. Marshall, 926 So.2d 867 (Miss. 2006) (bad-faith proof burden for extracontractual damages)
- Merrill v. United American Ins. Co., 978 So.2d 613 (Miss. 2008) (arguable basis for denial bars extracontractual damages)
- Beec h v. Leaf River Forest Prods., 691 So.2d 446 (Miss. 1997) (pretrial publicity and venue rulings; voir dire considerations)
- Bayer Corp. v. Reed, 932 So.2d 786 (Miss. 2006) (change of venue denial upheld where not specific to case)
- Johnson v. City of Pass Christian, 475 So.2d 428 (Miss. 1985) (photos contradicted plaintiff’s theory; supports JNOV principles)
- Janssen Pharmaceutica, Inc. v. Bailey, 878 So.2d 31 (Miss. 2004) (trial closing prejudicial arguments; “send a message” imagery caution)