Sweem v. American Fidelity Life Assurance Co.

Summary

The Supreme Court of Nebraska held that genuine issues of material fact existed as to whether Diane Sweem remained totally disabled under her group disability insurance policy when American Fidelity terminated her benefits. The court reversed summary judgment on the breach of contract claim and remanded that claim for further proceedings, while affirming dismissal of the bad-faith and emotional-distress claims.

Holdings

1. A later-obtained vocational assessment was relevant to determining whether Sweem remained totally disabled under the policy at the time benefits were discontinued, even though the insurer did not possess the assessment when it made its termination decision.
2. Genuine issues of material fact existed as to whether Sweem was totally disabled, as defined by the policy, when American Fidelity discontinued her benefits; therefore, summary judgment was improper on the breach-of-contract claim.
3. The judgment dismissing Sweem's bad-faith, negligent-infliction-of-emotional-distress, and intentional-infliction-of-emotional-distress claims was affirmed because Sweem did not assign or argue error concerning those claims.

Questions Presented

1. Whether the district court improperly disregarded Sweem's post-termination vocational assessment when deciding the breach-of-contract claim.
2. Whether the insurance policy or applicable law limited Sweem's ability to submit evidence of continuing disability after American Fidelity terminated benefits.
3. Whether genuine issues of material fact existed regarding whether Sweem was totally disabled under the policy when benefits were discontinued.
4. Whether summary judgment should be affirmed on Sweem's bad-faith and negligent and intentional emotional-distress claims when she did not assign or argue error concerning those claims.

Disposition

reversed_and_remanded