Beaman v. Pacific Mutual Life Insurance Company

369 F.2d 653 (4th Cir. 1966)

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Nature of the Case

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Facts

The policy was issued on December 28, 1961. It provided an indemnity of $200.00 per month if P were involved in an accident that caused his total disability, for as long as P remained in that condition. In the event of partial disability from an accident, the benefit was $100.00 per month for a like period. P was injured in an industrial accident while performing his usual occupation as an employee of a construction steel contractor. P suffered a total disability as a result of an accident which has in the past and will in the future during P's lifetime render him totally disabled and prevent him from performing every duty pertaining to any gainful occupation for which he is reasonably fitted as defined by the policy. D made good on the policy payments. On October 21, 1964, upon obtaining a report from one of P's attending physicians that he was then 'able to do light work,' D concluded that P was no longer totally disabled within the meaning of the policy, and monthly disability payments were discontinued in January 1965. P filed a complaint for a declaratory judgment in which P sought a declaration that he was permanently and totally disabled under the terms of a health and accident policy issued and to recover $69,884.00, based upon the monthly benefit under the policy times his claimed life expectancy, without discount. Diversity of citizenship was present. The district judge dismissed, for lack of jurisdiction upon the determination that the amount in controversy was less than $10,000.00 as P could only sue for past and present benefits but not future.