Fidelity & Casualty Co. v. Reed

86 P.2d 522, 149 Kan. 58, 1939 Kan. LEXIS 11
CourtSupreme Court of Kansas
DecidedJanuary 28, 1939
DocketNo. 34,011
StatusPublished

This text of 86 P.2d 522 (Fidelity & Casualty Co. v. Reed) is published on Counsel Stack Legal Research, covering Supreme Court of Kansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fidelity & Casualty Co. v. Reed, 86 P.2d 522, 149 Kan. 58, 1939 Kan. LEXIS 11 (kan 1939).

Opinion

The opinion of the court was delivered by

Thiele, J.:

This was an action to recover for premiums on three insurance policies issued by plaintiff to defendants, as partners engaged in contracting for highway construction, etc. One policy was dated September 24, 1932; the other two December 31, 1930. The [59]*59defendants answered separately. Defendant Reed filed a verified answer denying generally and alleging there had been a full compromise and settlement of all the indebtedness by an assignment in writing dated February 24, 1933, of an indebtedness due defendants from Armstrong Paving Company, the assignment being accepted in full payment by plaintiff. He also alleged the action was barred by the statute of limitations.

Defendant Wheeloclc filed a verified answer denying generally, alleged dissolution of the partnership on January 1, 1932; that the assignment was not executed by him or anyone authorized by him; that the assignment paid plaintiff’s claim; and other matters not now material.

Plaintiff’s reply denied allegations of the answers inconsistent with its petition and alleged the assignment was taken as a written acknowledgment of the debt and as some security therefor, and that at the time it was executed defendants knew it was worthless; that defendants were estopped to deny they were partners, etc.

Some of the facts were agreed to prior to the trial, which was by jury. While the abstract does not disclose clearly, apparently it was understood from the start of the trial the only question to be submitted to the jury was:

“State whether the assignment of February 24, 1933, from Reed & Wheelock to The Fidelity and Casualty Company was made as settlement in full or as security.”

At the conclusion of the trial this question was submitted to the jury under instructions, of which no complaint is made, and its answer was: “Paid in full.” The trial court, approved the verdict and rendered judgment for the defendants. Plaintiff’s motion for a new trial was denied and it appeals, specifying errors which will be discussed in the order presented in its brief.

Preliminary to that discussion, it is to be noted that the insurance policies in question were written through plaintiff’s office in St. Louis, its resident manager there being J. H. Belden, who had been in correspondence with defendant Reed concerning payment of the above premiums. Reed had advised him that he had a claim against Armstrong Paving Company; that S. D. Butters, of Des Moines, Iowa, who was also an agent of plaintiff, had been appointed receiver of the paving company, and Reed would be glad to authorize Butters to pay Belden the amount due for premiums on payment of his claim of $2,500 against the paving company. Belden wrote [60]*60Reed that he would write Butters and if the matter was satisfactory to Butters, “we are quite sure there will be no difficulty in working the matter out.” Omitting details, Reed saw Butters and the following document was prepared by Butters, signed by Reed and ultimately reached Belden:

“Assignment
“We hereby assign to the Fidelity & Casualty Company interest in the amount of $1,109.26, of our claim against the Armstrong Paving Company covered by one promissory note in the amount of $2,500. This assignment to cover the amount of money due the Fidelity & Casualty Company from Reed & Wheelock on the following policies:
Fidelity & Casualty No. 6443810.
Fidelity & Casualty No. 2383470.
Fidelity & Casualty No. A89954.
“We hereby direct S. D. Butters, receiver for the Armstrong Paving Company, to pay over to the Fidelity & Casualty Company the sum of $1,109.26 of the proceeds received from this note.
“Signed this 24th day of February, 1933. “Reed & Wheelock,
By E. D. Reed.
“Notice accepted — S. D. Butters, Red’

It is this document which plaintiff contended was an acknowledgment of the debt and security for it, and which defendants contended was payment.

It is first contended the trial court erred in rejecting offered evidence. There is no question but that the rejected evidence was properly brought before the trial court on motion for a new trial.

Plaintiff contended that Belden was without authority to accept the assignment in settlement of the claim for premiums due. In that connection, it offered a contract of employment between the company and Belden. An objection was made and sustained for the reason that the contract did not tend to prove any issue, and also for other reasons which we need not review. An examination of the document shows it was dated May 4, 1920, covered employment from March 1, 1920, to February 28, 1921, and could have been terminated at any time on thirty days’ notice for certain parts of the business, and under certain circumstances could have been terminated at any time. The record fails to show the contract was continued in force by any agreement of any kind. We need not review the authorities cited in the briefs covering the other objections made to this evidence nor the comment of the trial court. The contract covered a period too remote and did not tend to prove the issue, and objection to its being received was properly sustained.

[61]*61Complaint is also made because the trial court refused to permit Belden to testify as to the extent of his authority. Space does not permit, and no good purpose would be served by quoting specific questions and answers. An examination of the record shows the questions objected to were so framed that answers thereto would have been mere legal conclusions. The ruling thereon was correct.

A further contention is made the trial court erred in refusing to permit the witness Butters to testify concerning instructions given him by long-distance telephone conversation with Belden shortly before the assignment was prepared by Butters. Appellant directs our attention to State v. Pearce, 87 Kan. 457, 463, 464, 124 Pac. 814; State v. Marsee, 93 Kan. 600, 602, 603, 144 Pac. 833; State v. Uhls, 121 Kan. 377, 381, 382, 247 Pac. 1050, and contends they support its claim the rejected testimony was a part of the res gestae. The record shows that the meeting between Reed and Butters was arranged by Belden. At the trial Butters was asked whether anything was said by Reed as to whether the assignment was to be made as collateral. Butters said there was not, and then volunteered the statement that two or three hours earlier he had a telephone call from Mr. Belden at St. Louis. Objection was made to his stating the contents of the call, unless it was in the hearing of Reed. The affidavit used on motion for a new trial is to the effect Belden told him to take the assignment for collateral, but it does not state the instruction was communicated to Reed. It seems too clear to require discussion that the instructions of Belden to Butters limiting the latter’s authority, none of which was communicated to Reed, are not admissible against Reed to show Butter’s lack of authority, if there was such lack. The mere fact the instructions were given shortly before the agent acted for his principal did not have the effect of making the instructions part of the res gestae under the situation here obtaining.

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Related

Lola Saba & Son v. Detroit Copper Mining Co.
124 P. 814 (Arizona Supreme Court, 1912)
Aultman Thrashing & Engine Co. v. Knoll
79 P. 1074 (Supreme Court of Kansas, 1905)
State v. Pearce
87 Kan. 457 (Supreme Court of Kansas, 1912)
State v. Marsee
144 P. 833 (Supreme Court of Kansas, 1914)
State v. Uhls
247 P. 1050 (Supreme Court of Kansas, 1926)

Cite This Page — Counsel Stack

Bluebook (online)
86 P.2d 522, 149 Kan. 58, 1939 Kan. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fidelity-casualty-co-v-reed-kan-1939.