My students in Insurance described feeling saturated by political debates, and I sympathize. Today, I won’t be blogging about a current crisis or pressing First Amendment lawsuit. Instead, I want to demonstrate how thinking about a purer legal issue – arising in an Insurance case about whether a particular contract term should be void as a matter of public policy –gives us perspective on more abstract questions involving freedom to contract and the scope of the judicial role in shaping public policy. Contemplating these questions outside of our fraught political climate may be helpful in thinking through current issues.
Contracts are generally enforced as written, unless their terms violate a state’s specific public policy, either codified by the legislature or articulated by judges. “Public policy” is why courts will not enforce the terms of a murder-for-hire contract, or an organ-sale contract, even though the parties freely bound themselves by the contract’s terms. Those are easier cases. Cases involving public policies not specifically covered by statutory prohibitions are much more difficult and complex. How much power one believes a judge should possess to nullify an insurance contract depends on one’s views about autonomy, insurers and their motives, and the role of judges versus private parties in ordering society.
Continue reading “An Insurance Amputation Case With a Pure Legal Issue”