Eckenrode v. Life of America Insurance Company
United States Court of Appeals for the Seventh Circuit
470 F.2d 1 (1972)
Life of America Insurance (defendant) issued a $5,000 accidental-death policy on Eckenrode's (plaintiff) husband, and after his death left her with children and no assets, the company refused payment despite having no genuine basis to doubt her claim, leaving Eckenrode to borrow money and rely on relatives. The company then sent a letter falsely implying payment depended on an ongoing police investigation and urged her to settle for less than the policy's value; Eckenrode sued for intentional infliction of emotional distress, and the district court dismissed her suit.
Whether the use of economic coercion may be considered outrageous conduct for purposes of an action for intentional infliction of emotional distress.