Insurance Co. v. Harris

97 U.S. 331, 24 L. Ed. 959, 1877 U.S. LEXIS 1783
CourtSupreme Court of the United States
DecidedMarch 25, 1878
Docket24
StatusPublished
Cited by38 cases

This text of 97 U.S. 331 (Insurance Co. v. Harris) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Insurance Co. v. Harris, 97 U.S. 331, 24 L. Ed. 959, 1877 U.S. LEXIS 1783 (1878).

Opinion

Mr. Justice Strong

delivered the opinion of the court.

The first assignment of error is that the Circuit Court refused to allow the matter of the decree of interpleader in the New York case, which is mentioned at the end of the first bill of exceptions, to be set up in any manner, either by way of plea or in evidence. To understand this assignment, it is necessary to observe carefully what the New York case was. It was a bill filed on the 4th of April, 1872, in the Supreme Court of New York, wherein Rosalie C. Barry was complainant, and The Mutual Life Insurance Company, together with William H. Bruñe and Horatio L. Whitridge, were defendants. *333 The bill aven ed, in substance and effect, that two policies of insurance, one for $20,000 and the other for $5,000, on the life of John S. Barry, the complainant’s husband, dated Jan. 18, 1872, issued by the insurance company to Bruñe, belonged in equity to her; that they were substitutes for or continuations of policies the company had previously issued to her, upon which she had paid the premiums for a number of years, and which, by the compulsion and misrepresentations of her husband, she had been induced to assign to Bruñe without any consideration; that afterwards Bruñe arranged to have the policies surrendered, and those of Jan. 18, 1872 (which are the same as those upon which the present suit has been brought), issued to him in lieu of the surrendered ones; that this arrangement was carried out; that the new policies were issued bearing the same numbers as those of the old, calling for the same premiums, insuring the-same amounts; that no consideration was paid for them other than the surrender; that the premiums were paid as of the times when they -were due on the surrendered policies '; that such payment ivas made principally by the application on. account thereof, without her knowledge or consent, of the cash value of the dividends to Avhich she was entitled in virtue of the former policies issued to her, and with which she had been credited by the company. The bill also charged that Bruñe paid in money only the difference between such cash value of her dividends and the aggregate amount of the annual premiums, and that the cash was furnished to him, at his request, by the complainant’s husband, on her account. The prayers of the bill Avere that the insurers should be enjoined against making any payment of such insurance to Bruñe or to Whitridge (Avho claimed some right as assignee of Bruñe), and that payment to her,should be decreed. She also prayed that it might be adjudged she had not parted with or been divested of her rights under said policies, and that the defendants, Bruñe and Whitridge, might be decreed to have acquired no right or interest therein.

On the 27th of June next following, Bruñe filed an answer, and at the same time Whitridge also answered. In neither ansAver was there a denial of most of the averments of the bill. Bruñe denied that Mrs. Barry’s assignments were involun *334 tary, and claimed that the first policies were taken by him as collateral securities for loans which he had made to her husband ; that if the assignments were improperly made, it was without his knowledge or belief; asserted that he had assigned the substituted policies to Whitridge, and insisted that the court should decree a dismissal of the complainant’s bill, and should give judgment in favor of Wbitridge’s right to collect the sums due under the policies. The answer of Whitridge was similar in substance.

Subsequently the company put in an answer to Mrs. Barry’s bill, accompanying it with a petition for an interpleader. The answer conceded the company’s liability to pay the sums-due upon the policies (those issued to Bruñe, and the same as those in suit in the present case); averred readiness to pay to the person or persons lawfully entitled to receive payment, and to whom, payment could be made with safety; and offered to pay into court. The petition prayed that the company might be permitted thus to pay; that thereupon it might be discharged; and that Bruñe, Whitridge, and Mrs. Barry might be ordered to interplead.

The case in the Supreme Court of New York, therefore, though not strictly a bill of interpleader, was in effect that, and more. It was in the nature of such a bill, and was, under the practice of that State, a proper proceeding to determine the rights of the parties. Badeau v. Rogers, 2 Paige (N. Y.), 209. Brune and Whitridge, as well as Mrs. Barry and the company, were parties to it, and all of them appeared and pleaded. The court thus had complete jurisdiction alike of the insuring company, of Whitridge, Bruñe, and Mrs. Barry, the persons claiming as assured by the policies, and also of the subject,— the liability of the company to the claimants.

On the twenty-sixth day of November, 1873, a decree was entered in the case, which was a final determination of the rights of Whitridge, Brune, and Mrs. Barry, or either of them, as against the company. So far as it is necessary to refer to it, it was as follows .* —

“ It is further ordered that the defendants, The Mutual Life Insurance Company, within three days next hereafter, deposit the residue of said $25,000 with the United States Trust Com *335 pany of New York, to the credit of this action, for the benefit of the plaintiff, or either of the other defendants herein who shall be found to be entitled thereto, and that said defendants, The Mutual Life Insurance Company, so depositing said amount with said trust company to the credit of this action, be dismissed from the further defence of this action, and thereupon be released, acquitted, and discharged from all claims or liabilities to the said Rosalie C. Barry, plaintiff, and William H. Bruñe and Horatio L. Whitridge, defendants herein, or any or either of them, for, upon, or by reason of the said sum of $25,000, or upon said policies of insurance, on the payment of said amount, less said adjusted costs as aforesaid, to the said The United States Trust Company of New York.”

It was further ordered that the several claimants be enjoined from bringing any other action or proceedings against the defendant, The Mutual Life Insurance Company of New York, upon the said policies of insurance; and the claimants were also ordered to interplead upon the pleadings already interposed.

On the same day the insurance company paid to the United States Trust Company, to the credit of the action, as ordered, the amount of the policies.

It was this judgment of the New York Supreme Court which the plaintiffs in error offered to plead at the trial in the Circuit Court puis darrein continuance, and also offered to give in evidence, under an agreement between the parties, and, still further, independently of any agreement. But the court refused to allow it to be pleaded, or to be given in evidence; and this refusal is assigned as error.

The argument submitted to us has taken a very wide range. Much has been said which, in our opinion, has no bearing upon the exact question before us. It may be admitted that the pendency of an' action between the same parties and for the same cause, in a foreign jurisdiction, is pleadable only in abatement. So it may be admitted that even a plea in bar, puis darrein continuance, cannot be received without verification.

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Bluebook (online)
97 U.S. 331, 24 L. Ed. 959, 1877 U.S. LEXIS 1783, Counsel Stack Legal Research, https://law.counselstack.com/opinion/insurance-co-v-harris-scotus-1878.