Fields v. Equitable Life Insurance

154 S.E. 738, 199 N.C. 454, 1930 N.C. LEXIS 143

• Court: Supreme Court of North Carolina
• Decided: September 24, 1930
• Status: Published

Opinion

Pee Cueiam.

In cases involving removal to the Federal Court on the ground that more than $3,000 is involved, the test is the value of the property of which the defendant may be deprived by the judgment demanded, rather than the amount of the claim of plaintiff alone, where, of course, such claim upon its face does not exceed the jurisdictional limitations. Harrison v. Allen, 152 N. C., 720, 68 S. E., 207.

It appears from the complaint that the policy of insurance provides that if the insured shall at any time become able to engage in any gainful occupation or shall fail to furnish satisfactory proof of continuance of total disability, then in such event the defendant is under no obligation to waive premiums or pay income installments.

The cause of action stated in the complaint is for installments alleged to have accrued under the policy from 1 October, 1924, to 5 August, 1929. These do not exceed the jurisdictional limit. The defendant can contest its liability therefor, under the express terms of the contract, not only in this action, but in any subsequent action for future installments. Hence, the only property which the defendant may be deprived of by the judgment demanded in this action is the accrued installments, aggregating $2,950. Therefore, the petition, for removal was properly denied. Wright v. Insurance Co., 19 Fed. (2), 117.

Affirmed.