Commercial Union Assurance Co. v. Foley Bros.

169 N.W. 793, 141 Minn. 258, 1918 Minn. LEXIS 405
CourtSupreme Court of Minnesota
DecidedDecember 20, 1918
DocketNo. 21,032
StatusPublished
Cited by31 cases

This text of 169 N.W. 793 (Commercial Union Assurance Co. v. Foley Bros.) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Commercial Union Assurance Co. v. Foley Bros., 169 N.W. 793, 141 Minn. 258, 1918 Minn. LEXIS 405 (Mich. 1918).

Opinion

Brown, C. J.

The facts in this case are substantially as follows: The Dickerman Investment Company, a corporation, was the owner of certain premises situated in the city of St. Paul, and known as 228-234 East Fourth street. The Dickerman Company leased the premises to the L. D. Cod-don & Company, and thereafter that company occupied the premises in the wholesale clothing trade. The Dickerman Company subsequently sold and conveyed the premises to the defendant Union Depot Company, to be used by that company in connection with adjoining property owned by it in the construction of a new depot building. After demolishing [259]*259and removing an adjoining building, the defendant Foley Brothers, employees of the depot company, started a fire, for the purpose of burning the débris and rubbish left after the completion of the work, and the smoke and odors therefrom permeated the building occupied by the Coddon Company, and caused damage to the stock of clothing in the sum of $7,500. The stock was insured and claim- for the loss and damage so suffered was made, and there was an adjustment of the same and the payment of the amount stated by the several insurance companies, plaintiffs in this action. Coddon & Company claimed that the fire causing the damage was negligently started by defendants, and that they were liable for the loss. The company assigned its right of action therefor to plaintiffs, and they in turn brought this action against defendants for the damage so claimed to have been caused.

In the lease under which Coddon & Company held possession of the building, there were two separate clauses, to be referred to more fully later in the opinion, by which it is claimed that the lessor, the Dicker-man Investment Company, was released from liability for any and all damage to the lessee’s stock of clothing which might be caused by fire “howsoever coming upon or being within said premises.” Defendants have succeeded to all rights which the lease granted or secured to the investment company, and by their answer interposed the claimed exemption from liability in defense to the action. A demurrer to the answer, as not stating a defense, was overruled by the court below and plaintiffs appealed.

The provisions of the lease relied upon by defendants appear in separate parts thereof and are as follows:

(1) “Said L. D. Coddon & Company will make no claim against the lessor for or on account of any loss or damage sustained by water or fire howsoever coming or being-within said premises.”

(2) “The lessor shall not be in any way or to any extent liable for any loss or damage to any property at any time at or within said leased premises, whether occasioned by fire or water or gas which may come or be therein or from any other cause whatsoever.”

It is contended by plaintiffs in support of the demurrer to the answer: (1) That the provisions of the lease quoted properly construed do not include or embrace damage or loss occasioned by a fire negligently [260]*260started by the lessor or its representatives; and (2) if construed to include the negligence of the lessor, that the provisions are contrary to public policy and void. Neither contention can be sustained.

1. In determining the question whether the stipulations of the contract include an exemption from loss occasioned by the negligence of the lessor, recourse must be had to the contract as a whole, the subject matter thereof, the general purpose the parties had in view and the natural meaning of the language used by them in expressing their intention. In that light we have no particular difficulty in sustaining the decision of the trial court to the effect that the language of the contract includes a fire occasioned by the negligence of the lessor. The authorities sustain that view in cases involving contracts where the exemption from liability is couched in general terms as in the case at bar. Hosmer v. Old Colony R. Co. 156 Mass. 506, 31 N. E. 652; Day v. Mill-Owners’ Mut. Fire Ins. Co. 70 Iowa, 710, 29 N. W. 443; Buchanan & S. Lumber Co. v. East Jersey Coast Water Co. 71 N. J. Law, 350, 59 Atl. 31; Long v. Lehigh Valley R. Co. 130 Fed. 870, 65 C. C. A. 354. If that be not the proper construction of the stipulation, there would seem but little left for the contract to act upon.

Eires resulting in the injury and destruction of property spring ordinarily from negligence in some form. An intentional or incendiary fire often occurs, but generally the cause comes from the failure of some one to exercise the necessary precautions to avoid the same. A fire in a building may spring from defects in the heating plant, defects in the wiring for electric lights, defects which could have been discovered by reasonable diligence, and the danger of fires removed. -If the fire complained of by plaintiff in the case at bar had arisen from a cause of that kind, clearly the exemption from liability would have covered a loss thus occasioned, even though the result was chargeable to the negligence of the lessor in leasing the premises in such defective condition. And it is equally clear that if the contract would include negligence in that respect, a question without serious doubt, the act of negligence in starting a fire outside the building, which results in damage, would also be included. No distinction can be drawn between the two situations. And as suggested, if the negligence of the lessor here complained of be excluded, little is left of the apparent purpose of the [261]*261parties in entering into the contract. The rules guiding the courts in such cases will not permit of a construction that would render the contract practically inoperative and a nullity. And we hold without further comment that the contract here involved necessarily was intended to protect the lessor from its own acts of negligence.

2. It is fairly well settled that a contract exonerating one from his ' acts of negligence is not invalid, unless prohibited by statute or be in contravention of sound public policy. Such contracts have frequently been upheld as to railroad corporations, where the subject matter thereof in no way involved their obligations to the public. Santa Fe Ry. Co. v. Grant Bros. 228 U. S. 177, 33 Sup. Ct. 474, 57 L. ed. 787; James Quirk Milling Co. v. Minneapolis & St. L. R. Co. 98 Minn. 22, 107 N, W. 742, 116 Am. St. 336; Hartford Fire Ins. Co. v. Chicago, M. & St. P. Ry. Co. 70 Fed. 201, 17 C. C. A. 62, 30 L.R.A. 193, 175 U. S. 91, 20 Sup. Ct. 33, 44 L. ed. 84. Counsel for appellant recognize the rule as thus laid down and applied and the authorities supporting it, but contend that a distinction should be made between a railroad company, in a lease of a part of its right of way for private purposes, and other contracting parties. We discover no substantial basis for the suggested distinction. The rule has application only to .matters of ordinary private contractual relations, and not where the subject of the contract involves the public welfare or duties expressly imposed by law. In transactions free from considerations of the latter kind, no sound reason can be given for extending to the railroad company special privileges in this respect.

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Bluebook (online)
169 N.W. 793, 141 Minn. 258, 1918 Minn. LEXIS 405, Counsel Stack Legal Research, https://law.counselstack.com/opinion/commercial-union-assurance-co-v-foley-bros-minn-1918.