CONTRACTS --ANTICIPATORY BREACH- DENIAL OF LIABILITY AS A REPUDIATION

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Abstract

A life insurance policy provided that the insured was to be paid a certain sum per month in case of permanent disability. A dispute arose between the company and the insured as to the proper construction of the contract. The company expressed willingness to perform the contract as it construed it, but this was a refusal to pay the monthly disability income. The insured brought an action to recover total damages for anticipatory breach, of the contract to pay the permanent disability benefits. Held, that the insurer had not made such an unequivocal refusal to perform the contract as amounted to a renunciation giving rise to anticipatory breach, though it had misinterpreted the contract. Kimel v. Missouri State Life Ins. Co., (C. C. A. 10th, 1934) 71 F. (2d) 921.