Greguhn v. Mutual of Omaha Ins. Co.

While plaintiff was working as a brick mason, a scaffold fell from beneath him, resulting in injury. Plaintiff consulted an orthopedic surgeon, who concluded that plaintiff had a preexisting back condition known as "spondylolisthesis." Plaintiff was insured by Mutual of Omaha for accidents and United Benefit Life. Defendants made payments to plaintiff under the policies until they notified him that his ailment would be considered an "illness without confinement" and ceased payments. Plaintiff sued both insurers, contending that the accidental fall activated a latent condition and produced a total and permanent disability witihn the terms of the policies.

Restatement of Contracts, Section 318, states, "In [a] unilateral contract for the payment [of money] in installments after default of one or more, no repudiation can amount to an anticipatory breach of the rest of the installments not yet due."

Contract Duties | Protecting the Exchange on Breach