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Contracts Keyed to Murphy
John Hancock Mutual Insurance C. v. Cohen
Facts
The insured had a policy with Defendant where, instead of paying a lump sum, Defendant would make payments, starting at the time the policy was created, for the next twenty years, ending with a final payment. After payment for fifteen years, to Plaintiff-beneficiary, Defendant paid the final $5000.00 and then ceased payments, claiming that there was a mistake and both Defendant and insured intended the contract to be for fifteen years. Plaintiff sued Defendant. On the issue of mistake, the lower court found for the Plaintiff. The lower court also held that Defendant had breached the contract by anticipatory repudiation. The court awarded Plaintiff an $8,000.00 award that included all the installments due under the policy and the final payment.
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