Bankers Life Co. v. Loring

250 N.W. 8, 217 Iowa 534
CourtSupreme Court of Iowa
DecidedSeptember 19, 1933
DocketNo. 41686.
StatusPublished
Cited by5 cases

This text of 250 N.W. 8 (Bankers Life Co. v. Loring) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bankers Life Co. v. Loring, 250 N.W. 8, 217 Iowa 534 (iowa 1933).

Opinion

Anderson, J.

The appellant Raymond N. Klass is an attorney residing and practicing law in Cedar Rapids, Iowa, and as such *535 brought three separate suits against the appellee, Bankers Life Insurance Company, in Freeborn county, Minnesota. Two of such actions being brought in the name of Ruth Whitlatch Loring, one of the appellants, herein, and the other in the name of Clara E. Welch. Both of the plaintiffs in the Minnesota cases were and are residents of Iowa. The defendant in each of the actions pending in the state of Minnesota, the plaintiff and appellee here, is a life insurance corporation organized under the laws of the state of Iowa, with its principal place of business in the city of Des Moines, Polk county, Iowa. All of the cases commenced and pending in the courts of Minnesota were upon life insurance policies issued by the said insurance company in Iowa.

The testimony fairly shows that there was some controversy between the defendant Klass and the insurance company over the settlement of alleged claim in behalf of Clara E. Welch, the plaintiff in one of the Minnesota actions. And upon the failure of the insurance company to negotiate for an adjustment of such claim and its denial of liability thereon, the said defendant Klass stated to it, in substance, that, if the claim was not settled, he would cause the insurance company the trouble and expense of defending an action thereon in a state other than Iowa, and. that any other cases he might have against the company he would also commence and prosecute in a foreign state. That it was going to cost the company a lot of money to defend that and other claims. He also questioned the integrity and character of two certain attorneys in Iowa City who represented the claimant Clara E. Welch in a prior settlement of her alleged claim. He also stated that he was through trying cases in Iowa; that he felt that he could get justice in the courts of Minnesota and not in the courts of Iowa; he also intimated that there was some political influence. exerted over the courts of Iowa, and that he would bring any actions he had on neutral ground. After the attempted settlement of the alleged claim of Clara E. Welch, the defendant Klass, as attorney, brought an action upon the claim in the district court of Minnesota, as well as two actions upon alleged claims against the same insurance company in behalf of Ruth Whitlatch Loring, one of the defendants in this action. The record shows, as we have stated, that all parties in the Minnesota actions are residents of the state of Iowa; that all records of the insurance company are kept at its home office in Des Moines, Iowa, and that a large number of such records would have to be removed *536 from the home office to the state of Minnesota in making defense to the actions there pending; that all of the witnesses necessary for the defense of said actions reside in Iowa, and that it would be necessary to transport such witnesses from various points in Iowa to the county in which the actions are pending in Minnesota, or to take their testimony by deposition, if they refused to voluntarily appear in the courts of Minnesota; that it would incur a considerable amount of expense in transporting the witnesses to the state of Minnesota and keeping them there during the trial of the cases; and that much of such expense would be nontaxable as costs in the actions; that it would entail an additional expense and a great inconvenience in removing necessary records from the home office of the insurance company in Des Moines, Iowa, to the state of Minnesota. There was testimony by a Mr. Lorentzen, an attorney representing the insurance company in the defense of the Loring cases pending in Minnesota, that the records, and documents reasonably necessary to have available in the defense of the Minnesota cases, are in daily use by the company in Des Moines, and that it would be impossible to anticipate the evidence of the plaintiff so that the defense testimony could be presented by depositions. The record further shows that the insurance company filed answer in each of the actions pending in Freeborn county, Minnesota.

The plaintiff claims that, by the further continuance of the prosecution of the actions in Minnesota, it will be put to additional and needless expense and nontaxable costs; that it will be subjected to a trial before a court of a foreign state which must ascertain the law through imperfect methods of proof, and which court will not take judicial notice of the laws of Iowa, which laws govern and are determinative of the rights of the parlies under the contracts sued upon; that the said actions pending in the state of Minnesota were instituted by the defendant Klass, as attorney for the plaintiffs, for the purpose of attempting to coerce a settlement of the pretended claims by vexatious, costly and inconvenient litigation; and that said actions were brought in said state of Minnesota by the defendants in this action in bad faith and for the purpose of vexing, annoying, harassing, and oppressing the plaintiff. That said actions can be more conveniently and economically tried by all parties in the courts of the state of Iowa.

The defendants traverse the claims and contentions of the plaintiff, and contend that the actions brought in the courts of Minnesota *537 are transitory actions; that the courts of Minnesota have jurisdiction to entertain the same; that the Bankers Life Company has qualified and is authorized to act and transact business in that state, and that it is subject to the jurisdiction of the courts of Minnesota; that the bringing of the actions here involved in the state courts of Minnesota does not violate any statutes of the state of Iowa; that there is no legal prohibition against bringing and maintaining said suits in said foreign states; and that, by appearing and filing answer in the suits brought by these defendants in the courts of Minnesota, the plaintiff in this action has waived any rights it may have had to question in this proceeding the right of the defendants to further prosecute the actions pending in the courts of Minnesota.

Upon the record thus briefly recited, the district court of Linn county, Iowa, the honorable H. C. Ring presiding entered a judgment and decree perpetually enjoining the said defendants from further prosecuting or maintaining said causes of action pending in the state of Minnesota and from directly or indirectly instituting, maintaining or continuing in any state other than the state of Iowa, any actions or suits founded upon or based in any way on the policies of insurance involved in said actions. From such judgment and decree the defendants prosecute this appeal.

The principal question to be determined in the disposal of this appeal is one of fact as will be disclosed in the following discussion. All of the parties to the actions pending in Minnesota are residents and citizens of the state of Iowa, as is also one of the attorneys, the defendant Raymond N. Klass. The contracts of insurance involved are Iowa contracts. There is no question but what actions upon said contracts are transitory in their nature, and that the courts of Minnesota have jurisdiction to entertain such actions. As to the merit of plaintiff’s claims, as made in those actions, we have no concern.

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Bluebook (online)
250 N.W. 8, 217 Iowa 534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bankers-life-co-v-loring-iowa-1933.