Blum v. Manhattan Life Insurance

256 A.D. 785, 11 N.Y.S.2d 750, 1939 N.Y. App. Div. LEXIS 4847

This text of 256 A.D. 785 (Blum v. Manhattan Life Insurance) is published on Counsel Stack Legal Research, covering Appellate Division of the Supreme Court of the State of New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Blum v. Manhattan Life Insurance, 256 A.D. 785, 11 N.Y.S.2d 750, 1939 N.Y. App. Div. LEXIS 4847 (N.Y. Ct. App. 1939).

Opinion

Dore, J.

Plaintiff, a physician, brought this action to recover $6,000, the claimed reasonable value of services rendered by him to defendant at defendant’s alleged request in procuring for defendant certain medical data and information relating to a claim on a $50,000 policy of life insurance issued by defendant on the life of one Frank L. Goetz. Defendant, alleging plaintiff was employed by Ralph E. Nesbit & Co., a professional investigating company, admittedly hired by defendant to investigate the claim, denied the contract of employment and also denied plaintiff’s performance. All issues were submitted to the jury as issues of fact; the jury returned a verdict in plaintiff’s favor for $1,200; defendant appeals.

We will assume there was evidence sufficient to support the claim that plaintiff was employed by defendant and not by Nesbit. Nevertheless we think that the judgment entered on the jury’s verdict must be reversed and the complaint dismissed on the ground that on one essential aspect of plaintiff’s case, his faithful performance of the duty he contracted to perform, the jury’s verdict may not stand as it is contrary to the evidence adduced by plaintiff himself.

[786]*786According to plaintiff’s testimony he was hired to do the investigating on December 31, 1936, and immediately began the work; on January 5, 1937, he procured from a Dr. Abraham W. Buskin a letter written in the handwriting of that physician stating that as a result of Dr. Blum’s investigation of the case of Frank Goetz, the insured, Dr. Buskin definitely admitted that he had treated the insured for a number of years for coronary heart disease, the treatment having been given as early as 1933, at which time he prescribed metaphylin and amytol (drugs prescribed for cardiac disease). Dr. Buskin had known the insured for twelve years prior to his death, had signed the physician’s statement in connection with the application for the $50,000 policy in May, 1935, and had also signed the death certificate, but had failed to include in either the fact that the insured had been treated by him for heart disease as early as 1933. The $50,000 policy was issued in May, 1935; the insured died of coronary thrombosis in November, 1936. In the application for the $50,000 policy in May, 1935, the insured had stated he had never suffered from any ailment or disease of the heart, was in good health and had not consulted any physician within five years preceding the application.

Plaintiff testified that he had been to Dr. Buskin several times and the doctor at first stated he had never treated the insured for heart trouble. He also testified that by January 5, 1937, he had examined in various drugstores the originals of prescriptions prescribing the above specified drugs for the insured over a period of time long prior to the application for the policy, had made copies thereof and had these prescriptions in his possession on January 5, 1937. Plaintiff admitted that after said date he found nothing of importance and that the only thing of importance in his whole report was Dr. Buskin’s letter. Plaintiff also admitted that when he saw Mr. Boss, defendant’s general counsel, on January 6, 1937, he knew he had that letter in his possession, told him all the things that he had done up to that date but did not tell him anything about the letter although the letter had been given to him absolutely by Dr. Buskin without any conditions.

Nevertheless on January 6, 1937, at a conference between Mr. Nesbit, Mr. Boss, a Mr. Feeter, manager of defendant’s claim department, and Dr. Blum, plaintiff told Boss in substance that there was certain additional information which he could get that would “ break ” the case but it would cost $5,000 to procure it. Plaintiff testified: I told them that in going over their records I was confident a fraud had been committed, and I said I was fortunate in being able to have someone else give me leads to break this case, and I wanted their permission to promise an expenditure [787]*787of $5,000 to this other party for these leads.” Plaintiff admitted that Mr, Ross characterized the proposal as an outrage ” and stated he never heard of any such thing.”

After the conference Nesbit wrote defendant a letter dated January 6,1937, addressed to Mr. Boss, confirming “ our conference of this morning at which Mr. Feeter and Dr. Blum were also present,” and made in writing the proposal that if, as represented, we are able to secure evidence sufficient for you to break ’ this case * * * you will reimburse us for our necessary expenditures, amounting to $5,000 as explained, plus a fee of $1,000 making a total of $6,000,” and urged upon Boss the necessity of prompt action. On January 7, 1937, the defendant wrote that it “ in no sense accepts the proposal made in your letter of January 6, 1937.” On January 8, 1937, Nesbit wrote the company stating that Dr. Blum had refused to submit his report as requested and that under the circumstances he, Nesbit, withdrew from the case.

In our opinion the admitted suppression on January 6, 1937, of Dr. Buskin’s letter, the really important evidence discovered by Dr. Blum in his investigation, and the effort to secure $5,000 from the defendant to pay to someone to get the necessary information which Dr. Blum already had in his possession, was so serious a breach of the duty he owed his employer going to the very essence of the contract of employment that the jury’s verdict in plaintiff’s favor is contrary to the evidence.

Plaintiff concededly suppressed the essential evidence and information he was employed to procure and bound to reveal to his employer on January 6, 1937. Plaintiff testified: Q. And you got that report from Dr. Buskin on the 5th of January, 1937, didn’t you? A. That’s right. * * * Q. And up to that time, January 5, 1937, when you went to him and told him, you told him according to your report, didn’t you, of these various prescriptions that you found containing metaphylin as the prescription, and you told him that, didn’t you? A. That’s right. Q. So that you had the prescriptions then, and you told him what was in the prescriptions, and finally you got from him this letter on January 5th, didn't you? A. That’s right. * * * Q. And the only thing of importance in the whole thing was this letter of Dr. Buskin’s, wasn’t it? A. That’s right. * * * Q. And when you saw Mr. Boss on the 6th you knew you had that letter, didn’t you? A. I did. * * * Q. You didn’t tell him you had that letter, did you? A, No, I did not. Q. You went and told him all the things that you had done up to that time, I believe you stated on your direct examination, but you did not tell him about that letter which was the only important thing in the whole matter, [788]*788isn’t that right? A. That’s right, counselor. Q. Now, when you reported you stated in here about seeing Dr. Ruslcin on how many occasions? A. Three times altogether. Q. Now, did you say anything in this report that Dr. Buskin had given you that letter on any condition at all? A. I didn’t say it in this report, and I don’t imply it in this court. Q. The doctor gave it to you without any conditions at all, didn’t he? A. Absolutely.”

On redirect examination plaintiff testified: “ Q. After you had a conversation with Mr. Boss on January the 6th, 1937, at which time you told him in substance that there was some additional information that would break this case which would cost $5,000, and subsequent to that conversation Mr. Boss refused to pay for that information, is that correct? A. That’s right.”

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256 A.D. 785, 11 N.Y.S.2d 750, 1939 N.Y. App. Div. LEXIS 4847, Counsel Stack Legal Research, https://law.counselstack.com/opinion/blum-v-manhattan-life-insurance-nyappdiv-1939.