Great American Insurance Company v. Sam Horab

309 F.2d 262, 6 Fed. R. Serv. 2d 898, 1962 U.S. App. LEXIS 3785
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 31, 1962
Docket17018
StatusPublished
Cited by30 cases

This text of 309 F.2d 262 (Great American Insurance Company v. Sam Horab) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Great American Insurance Company v. Sam Horab, 309 F.2d 262, 6 Fed. R. Serv. 2d 898, 1962 U.S. App. LEXIS 3785 (8th Cir. 1962).

Opinion

BLACKMUN, Circuit Judge.

By this diversity action Great American Insurance Company seeks to void two farm fire insurance policies it issued to Sam Horab. It also seeks to recover $3,000 it paid Horab under one of the policies. Horab has counterclaimed for a $13,200 loss under the other policy. Tried to a jury, a special verdict was returned favoring Horab. Thereupon the trial court dismissed the complaint with prejudice and entered judgment for Horab on his counterclaim. The insurance company has appealed.

Only two issues find their way to us:

1. Did the trial court err in refusing to let the jury hear testimony as to claimed interference by Lary Horab, a son of Sam, with the service of a subpoena on Arlyn Ydstie?

2. Did the court err in submitting to the jury the special verdict’s third question having to do with intent to defraud?

The one policy was issued in July 1959. It afforded Horab insurance up to $3,000 upon baled hay, straw, and fodder on his farm in Williams County, North Dakota. On August 31, 1959, Horab notified the insurer of a loss sustained under that policy on that day. A formal claim was later filed; this described a loss in excess of the policy limit. The company paid Horab the $3,000 in December.

The other policy was one which had been issued in 1958. In March 1960 Horab asked the insurance company to extend the coverage of that policy to include a range bam at $12,000 and stacked hay, straw, and fodder at $1,200. This request was granted and an appropriate indorsement was issued and attached to the contract. On May 30, 1960, Horab notified the insurer that the property covered by this policy was totally destroyed by fire on that date. Again a formal claim was thereafter filed.

Each policy provided that it was void if the insured- wilfully concealed or misrepresented any material fact or his interest in the property, or in case of fraud.

Following the filing of the second formal claim the insurance company proceeded to investigate both losses. It then concluded, among other things, that the two fires were incendiary in origin; that the actual cash value of the barn covered by the indorsement was grossly less than $12,000; that Horab’s representations, both before the issuance of the policies and in the claim forms, as to values, causes of the losses, and insurable interest, were false and fraudulent; that they were made wilfully by him with intent to defraud the insurer; that this brought into play the contract provisions as to fraud and wilful concealment and misrepresentation ; and that had it not been for Horab’s continuing fraud and concealment the insurance company would not have paid the loss under the one policy, would not have indorsed the other policy, and would in fact have cancelled that policy. The present suit was then instituted.

A. The alleged interference. On the third day of the trial the insurance company’s counsel requested the issuance of a subpoena to Ydstie. This proposed witness worked for Clenton Horab, another son of Sam, and lived in Williams County about 140 miles west of Minot where the trial took place. Counsel asked LaVem Miller, a nephew of Sam and later an insurance company witness, to deliver the subpoena to LeRoy Lutz, Sheriff of Williams County, for service. Miller complied. What happened that evening is covered by the testimony of four witnesses, Miller, Lutz, Ydstie, and Lary Horab, taken in chambers the next day. It is this testimony, largely undisputed, which, upon a proper offer of proof, the court refused to permit to be repeated before the jury:

At the sheriff’s request, Miller accompanied Lutz when he went out to serve the subpoena. They first drove to Ydstie’s *264 home. No one was there. Miller then suggested that they drive to the farm of neighbor Alan Sutton. On the way a vehicle passed them going in the opposite direction. Miller identified it as the car of Lary Horab. That car immediately turned around and followed the sheriff’s car, as Miller described it, “right bumper to bumper practically”.

The sheriff turned into the Sutton yard. Lary followed. The sheriff stopped. Lary, “quick as a shot”, jumped out of his car, leaving the door open, and ran into the hous.e.. The sheriff and Miller saw him converse there with Sutton and Ydstie. The sheriff testified that Lary told Ydstie, “You don’t have to accept those papers” and “That Lutz is really trying to get us”, and to “come back into the house”. Miller said he heard Lary say, “I don’t think you have to talk to them guys”. Ydstie nevertheless came out with Lary and Sutton. When the sheriff attempted to serve the subpoena on Ydstie, Lary made other remarks. Miller testified that the sheriff told Ydstie he had a subpoena for him, that he was able to hand it to Ydstie by reaching across Lary, and that he did not have difficulty in handing it over. The sheriff accused Lary of interfering with the performance of his official duties. There is conflict as to whether the sheriff butted Lary out of the way with his shoulder. Ydstie and Lary said he did. Lutz and Miller said he did not. The sheriff told Lary that from the way he was acting he might be subject to arrest and really belonged in Jamestown (where the state mental institution is located). Ydstie testified that Lary was excited and that he was afraid Lary and the sheriff were going to fight. Lutz testified that he was “quite put out” and was “getting alarmed” and that he considered arresting Lary but did not do so because the ease was a federal one. The sheriff and Miller eventually drove off.

Ydstie did come to Minot, with Lary and Clenton Horab, in response to the subpoena. He said he would not have come had he not been subpoenaed. He had been approached by Lary earlier to testify on behalf of Sam.

Lary had been in the courtroom during most of the trial and had worked for and been a partner of his father. No question as to Lary’s agency for Sam is raised here. .

The insurance company’s position as to this evidence is that it constitutes an admission by the defendant of the false and fraudulent nature of his insurance claims and demonstrates his unwillingness to rely on the truth. Sam Horab’s position is that all this testimony could not support a finding that there was physical intimidation and that it falls far short of the type of evidence of influence which the courts have allowed to go to a jury.

It is generally held that, in a civil case, evidence that a litigant, or his agent, has attempted to influence or suppress a witness is receivable as an admission or as an indication of the litigant’s consciousness that his case is weak or unfounded or that his claim is false or fraudulent. 2 Wigmore, Evidence, 3d Ed., 1940, § 278, pp. 120-6, and cases cited; McCormick, Evidence, 1954 Ed., § 250, p. 537; 20 Am.Jur., Evidence, § 281, p. 266; 38 A.L.R. 595. See Segal v. United States, 8 Cir., 1957, 246 F.2d 814, 818, cert. den. 355 U.S. 894, 78 S.Ct. 269, 2 L.Ed.2d 192, and Carnahan v. United States, 8 Cir., 1929, 35 F.2d 96, 67 A.L.R. 1035, 101-103, cert. den. 281 U.S. 723, 50 S.Ct. 238, 74 L.Ed. 741. Specifically, an attempt to persuade a witness not to testify is admissible against the party responsible for that attempt. Maynard v. Bailey, 1920, 85 W.Va. 679, 102 S.E. 480, 481, 9 A.L.R. 981; City of Austin v.

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Bluebook (online)
309 F.2d 262, 6 Fed. R. Serv. 2d 898, 1962 U.S. App. LEXIS 3785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-american-insurance-company-v-sam-horab-ca8-1962.