Alabama National Life Insurance v. National Union Life Insurance

151 So. 2d 762, 275 Ala. 28, 1963 Ala. LEXIS 547
CourtSupreme Court of Alabama
DecidedApril 4, 1963
Docket6 Div. 774
StatusPublished
Cited by8 cases

This text of 151 So. 2d 762 (Alabama National Life Insurance v. National Union Life Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alabama National Life Insurance v. National Union Life Insurance, 151 So. 2d 762, 275 Ala. 28, 1963 Ala. LEXIS 547 (Ala. 1963).

Opinion

LAWSON, Justice.

On or about March 21, 1956, Alabama National Life Insurance Company purchased from National Union Life Insurance Company for the sum of $10,000 a bond issued by Belin Memorial University. The bond provided, in part, as follows:

“Belin Memorial University, a nonprofit corporation organized and existing under the laws of the State of Missouri (hereinafter called the 'College’), for value received hereby promises to pay to the bearer hereof, on the 15th day of December, 1975, the sum of Ten Thousand Dollars ($10,000.00), at the office of the First National Bank of Kansas City in the City of Kansas City, Missouri, and to pay interest thereon at the rate of four per cent (4%) per annum from the date hereof; as provided in the interest coupons attached hereto; upon the surrender of said coupons. * * * ”

On or about December 15, 1956, when the first interest coupon became due,' Alabama National presented it for payment to the First National Bank of Kansas City. The interest coupon was not paid. The First National Bank of Kansas City advised Alabama National that it had withdrawn as trustee. The president of Alabama National, Claude E. Shell, then contacted Dr. Clyde Belin, president of Belin Memorial University, who advised Alabama National that it should contact one Charles D. Dunne, who was - “in. charge” of the bonds issued by the University. Alabama National’s efforts to locate ' Charles D. Dunne were futile.

Alabama National apparently did not contact National Union concerning the bond until about July 29, 1959, when its attorneys wrote National Union a letter which, in parts, reads as follows :

“ * * * You will recall, of course, the agreement made by National Union Life Insurance Company with Alabama National Life Insurance Company to repurchase from Alabama National the Ten Thousand and no/100 Dollars ($10,000.00) bond issued by Belin Memorial University, Chillicothe, Missouri. You will further recall that this bond was originally owned by National Union and was then sold to Alabama National by National Union through its duly authorized representatives, and agents and those acting for, and in concert with them.
“More than the required six (6) months having expired since the date of purchase of the bond by Alabama National, we herewith request performance by you with the repurchase provision of the above agreement.
“We have fully protected your interest in the bond, a claim on said bond having been filed by us in the Belin Memorial University Bankruptcy proceeding presently pending in Kansas City, Missouri. * *

On August 3, 1959, the Treasurer of National Union wrote the attorneys for Alabama National as follows:

“With respect to your letter of July 29, 1959, regarding Alabama National Life Insurance Company versus National Union Life Insurance Company, we do not recognize any liability to your client and any tendered [sic] to us will be refused.”

[31]*31On August 19, 1959, Alabama National instituted this suit in the Circuit Court of Jefferson County against National Union.

The complaint contains seven counts. Counts One-A, Two-A and Three-A seek to recover of the defendant the sum of $15,-000 as damages for the breach of a contract to repurchase the bond. Count Four-A, which claims the sum of $10,000, is substantially in the form prescribed by the Code for suit on an account. Title 7, § 223, Form 10, Code 1940. Count Five-A claims the same sum for money loaned the defendant by the plaintiff. It is also substantially in the form prescribed by Form 10, supra. Counts Six-A and Seven-A seek to recover of the defendant the sum of $10,-000 for breach of warranty in the sale of a negotiable instrument. These last-mentioned counts, for present purposes, may be said to be substantially in the form prescribed by Title 7, § 223, Form 24, Code 1940.

The defendant, National Union, pleaded the general issue in short by consent in the usual form.

At the conclusion of the evidence offered by the plaintiff, Alabama National, the trial court gave the general affirmative charge with hypothesis for the defendant, National Union, which it requested in writing. A verdict in favor of National Union was returned by the jury and judgment was in accord with the verdict. Alabama National’s motion for new trial being overruled, it appealed to this court.

The plaintiff below, Alabama National, here insists that the trial court erred in giving the affirmative instruction in favor of the defendant, National Union.

In considering this question, we must review the tendencies of the evidence most favorably to plaintiff, regardless of any view we may have as to the weight of the evidence, and must follow such reasonable inferences as the jury was free to draw, not inferences which we may think the more probable. Wilson & Co. v. Clark, 259 Ala. 619, 67 So.2d 898, and cases cited.

National Union and Alabama National were both organized under the laws of Alabama. The home office of National, Union was in Montgomery. The date it was licensed to do business in Alabama is not shown. Alabama National’s home office was in Bessemer. It was licensed to do-business in this state on July 15, 1955.

In the early part of 1956 Charles- D» Dunne and his son, James E. Dunne,brought to the office of the Superintendent of Insurance of Alabama a large number of bonds having a face value of about $380,-000. The bonds were issued by Belin Memorial-University and West Buechel, Kentucky. Those bonds were turned over to-National Union by Charles D. Dunne. The record shows that National Union on March 17, 1956, received a contribution of BelinMemorial University bonds in the amount of $450,000.

James E. Dunne was the secretary-treasurer of National Union. Charles D. Dunne’s exact position with National Union-is not shown.

However, the Deputy Commissioner of Insurance of Alabama testified that Charles D. Dunne was one of the men who was “running” National Union. This witness also testified that the president of National Union told him that Charles D. Dunne “was-representing” that company.

There are tendencies of the evidence to-the effect that some time prior to March 21, 1956, Claude E. Shell, the president of Alabama National, agreed with some person or persons that Alabama National would purchase a $10,000 Belin bond from National Union. As far as this record discloses, the agreement was not made with an officer of National Union. Apparently the agreement was made with Leslie L. Gwaltney, the Superintendent of Insurance of the State of Alabama, and Charles D. Dunne, or one of them.

On or about March 21, 1956, Claude E. Shell, the president of Alabama National, went to the offices of National Union- in [32]*32Montgomery “to consummate the purchase agreement of this $10,000 worth of Belin bonds from the National Union Life Insurance Company.” He carried with him Alabama National’s check in the sum of $10,000 made payable to National Union.

Upon his arrival at National Union’s ■offices Mr. Shell advised the receptionist that he would like to see “the man in ■charge.” He was carried to the back of the ■office and introduced “to some young fellow” whose name he did not remember. The position the “young fellow” held with National Union is not made to appear.

In regard to his conversation with the '“young fellow” Mr. Shell testified:

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Bluebook (online)
151 So. 2d 762, 275 Ala. 28, 1963 Ala. LEXIS 547, Counsel Stack Legal Research, https://law.counselstack.com/opinion/alabama-national-life-insurance-v-national-union-life-insurance-ala-1963.