Life Plans , Inc. v. Security life of Denver Ins. Co.

Dist. Ct. erred in granting defendant-insurance company’s motion for summary judgment in action alleging that defendant breached contract to insure life insurance policies developed by parties and brokered by plaintiff, where defendant informed plaintiff four months after signing contract that it was terminating agreement because instant policy had not been approved by defendant’s internal review process. Contract contained ambiguity as to whether defendant could terminate contract at will, which precluded issuance of summary judgment, where parties presented conflicting extrinsic evidence as to said issue. Ct. also found existence of material fact as to: (1) whether defendant breached implied covenant of good faith, where plaintiff produced internal email from defendant’s CEO indicating that defendant was not acting “with integrity” in denying approval of proposed policy; and (2) whether proposed policy had actually been approved by defendant. Ct. rejected defendant’s argument that it could terminate contract at any time because termination provision contained no limit on timing of termination. (Partial dissent filed.)