American Employers' Insurance Company v. Jack Taylor

American Employers' Insurance Company (AE) appeals from an order granting a new trial to Taylor. Taylor appeals from the entry of a directed verdict in favor of AE on his claim against it for slander. We affirm the directed verdict but reverse the granting of a new trial. Taylor sued AE for tortious breach of contract after it refused to pay an insurance claim made when his business was destroyed by fire. AE contended that Taylor had himself set the fire and/or that he had violated the policy's ""concealment and fraud"" clause, which provides: ""This policy is void if any insured has intentionally concealed or misrepresented any material fact of circumstance relating to this insurance."" AE alleged that, during its investigation of the claim, Taylor had misrepresented his whereabouts prior to the fire and the true condition of his business.