Atlantic Joint Stock Land Bank of Raleigh v. Farmers Mutual Fire Insurance

166 S.E. 789, 203 N.C. 669, 1932 N.C. LEXIS 71

Opinion

Connor, J.

It may be conceded, without deciding, that there were errors in tbe trial of tbe issues involving tbe alleged liability of tbe defendants, E. P. Hager and bis wife, Iola C. Hager, to tbe defendant, tbe Farmers Mutual Fire Insurance Association. Such errors, if any, were not prejudicial to tbe appellant, for there was no error in tbe judgment that tbe defendant, tbe Farmers Mutual Fire Insurance Association, recover nothing of tbe defendants, E. P. Hager and bis wife, Iola C. Hager. This judgment is affirmed.

Tbe Farmers Mutual Fire Insurance Association was liable to tbe plaintiff, Atlantic Joint Stock Land Bank of Raleigh, N. C., under tbe provisions of tbe mortgage clause, attached to and forming a part of tbe policy of insurance which was issued by said defendant to its codefendant, E. P. Hager. This clause constituted a separate and distinct contract between tbe said defendant and tbe plaintiff. Tbe liability of tbe defendant to tbe plaintiff was not dependent upon or determined by its liability to tbe defendant, E. P. Hager, under tbe policy of insurance issued to him. Bank v. Assurance Co., 188 N. C., 747, 125 S. E., 631.

Tbe defendant, tbe Farmers Mutual Eire Insurance Association, was not a surety for tbe defendants, E. P. Hager and bis wife, Iola C. Hager, on their indebtedness to tbe plaintiff. Tbe said defendant is not entitled to be subrogated pro tanto to tbe rights of tbe plaintiff against tbe defendants, E. P. Hager and bis wife, Iola C. Hager, and for that reason cannot recover of said defendants tbe amount of tbe judgment which tbe plaintiff has recovered in this action of tbe said defendant, by reason of its separate and distinct liability to plaintiff under tbe provisions of tbe mortgage clause.

No error.