Kelly v. Provident Life & Accident Insurance Co.

Kelly (plaintiff) received disability benefits from Provident (defendant) for thirteen years before Provident, suspecting fraud, informed law enforcement and later admitted Kelly had actually disclosed his ongoing work activity and provided business records all along; Provident then terminated his benefits and sued him for fraud. After a default judgment was entered against him during settlement talks, Kelly began drinking heavily and considering suicide, and ultimately settled by forfeiting his disability claim in exchange for dismissal. Kelly later sued to rescind that settlement, arguing he lacked the mental and emotional capacity to handle the litigation, supported by expert testimony that he suffered from Avoidant Personality Disorder making him unusually susceptible to pressure; Provident moved for summary judgment.