Passatempo v. McMenimen
Massachusetts Supreme Judicial Court · 2012-01-12 · cited 58×
This case involved a dispute over a life insurance policy purchased in 1998, where insurance agent Frederick McMenimen misrepresented the death benefits as $500,000 rather than the actual $200,000, leading the plaintiffs (including the trustee and beneficiaries of an irrevocable trust) to sue McMenimen, his employer, and related insurance companies for common-law tort claims and violations of G.L. c. 93A. The court held that the claims were properly pleaded in tort and under c. 93A, making them subject to the limitation periods in G.L. c. 260 that allow for tolling due to fraudulent concealment. It further ruled that tolling applied to claims against McMenimen but not the other defendants, though the longer limitations period for the c. 93A claim meant it was not time-barred against Nationwide. The court also affirmed the trial judge's decisions that the economic loss doctrine did not bar the claims, that reliance on the misrepresentations was not unreasonable as a matter of law, and on the calculation of damages and attorney's fees.