Trevino v. Mutual of Omaha Insurance
Docket: No. 8532
Court: New Mexico Supreme Court; April 15, 1968; New Mexico; State Supreme Court
Julia Trevino, represented by a next friend, filed a lawsuit against Mutual of Omaha Insurance Company and its adjuster H. C. Moore, claiming fraud in obtaining a release of her insurance policy claims. The court directed a verdict for the defendants after the plaintiff's case, prompting an appeal. The central issue was whether there was sufficient evidence to warrant a jury trial. The insurance policy promised Julia Trevino monthly payments of $50 for total disability due to illness or accident. She experienced a cerebral hemorrhage, loss of speech, paralysis, and a subsequent amputation. Payments were made until May and June 1960, after which a release of all claims was procured by the defendants in exchange for a $950 payment, despite the potential total value of $7,500 based on her life expectancy. Evidence indicated that the defendants were aware of the Trevinos' financial struggles and that Mrs. Trevino had made some recovery, although a psychologist testified she was not mentally competent to transact business at the time the release was signed. Conflicting testimonies arose regarding whether the payment was an advance against future claims and whether Mrs. Trevino consented to the release. The trial judge dismissed the case, questioning the credibility of the plaintiff's witnesses; however, the appellate court emphasized that, at this stage, all evidence must be accepted as true and any contradictory evidence disregarded. The determination of witness credibility should be left to the jury, not the court. The appellate court concluded that the trial court erred in directing a verdict and ordered the case to be reversed, vacating the original verdict and judgment, and directing further proceedings consistent with this opinion. Chief Justice Chavez and Justice Compton concurred.