Johnston v. Mutual Reserve Life Insurance

104 A.D. 550, 93 N.Y.S. 1052
Appellate Division of the Supreme Court of the State of New York·Decided May 15, 1905·Published·Cited by 3 cases

Opinions

Laughlin, J.:

These, like the other Johnston cases (Johnston v. Mutual Life Ins. Co., Nos. 1-6, 8, 9, 11, 104 App. Div. 544) and the cases of Lambert v. Mutual Life Ins. Co., Nos. 1-3, 5-9 (104 id. 559), are actions for breaches of insurance contracts based on assigned judgments recovered in the Superior Court of North Carolina, but in these eases there was no motion to set aside the service and no special or general appearance ; in No. 7 there were no findings. The judgment was entered by default without proof of service, so far as appears by the judgment roll, other than on the Insurance Commissioner and no proof of the execution and filing of a power of attorney or other authority to make service upon the defendant by service upon him. The foreign judgment rolls in No. 7 show the issue of a summons [552]*552and service thereof upon Jhe: Insurance Commissioner by the sheriff on the 2d and 30th days of October, .1901, respectively; in No. 12 like service on the 8th of January, 1902; and in No. 13 on the Ytli of ■ March, 1902. The complaints upon which the foreign judgments were entered alleged, in substance, that the defendant is ” a corporation duly organized under the laws of New York doing business in the State of North Carolina and various'other States, but having its home office in the city of New York; that prior to the year 1890' the defendánt contracted with the respective plaintiffs, pursuant to the provisions, of its constitution and by-laws, to insure their lives in a specified amount in consideration of the payment, of assessments at rates specified in its then existing by-laws, according to the respective ages of the plaintiffs at the date of their admission to membership upon the death of each member when the death funds should be insufficient to meét the claim; that the statutes of New York under which the defendant was organized (Laws of 1875, chap. 267, § 2, and' Laws of 1883, chap. 175, § 16) conferred upon it power to adopt a constitution and by-laws and to modify the same but provided that before any amendment to a by Jaw should be adopted, it should be mailed to the members together with notice of the túne and palace when it would be considered; that on the 12th day of June, 1895, the board of directors and executive committee of the defendant, without giving notice of a change of the by-laws as required by the statute of 1883, iii violation of the plaintiff’s rights, adopted a resolution increasing the assessment on members admitted prior to January 1, 1890, by changing the ages of the members upon which the.rates o'f assessment were based by adding thereto one-half the number of years between the date of their admission and the 1st day of January, 18.95, counting fractions of a year as a full year, with certain exceptions not material to the present inquiry, thereby materially increasing the rate of assessments against the pfiaintiff and not changing the rate of assessment of members admitted subsequent to January 1., 1890; that defendant subsequently levied an assessment against the * respective plaintiffs at the increased rate and for their failure to pay the same-the defendant wrongfully and without authority canceled the respective policies to the damage of the respective plaintiffs in the amount of their respective initiation fees, annual dues, assess^ ments and interest thereon from the dates of payment. • The foreign [553]*553judgment rolls show that the respective actions were brought to trial on the verified complaints; that no answer thereto w*as filed and that the court ordered and adjudged that the plaintiffs recover of the defendant judgment as by default; that the cases were retained for the assessment of the damages by a jury and after their assessment final judgments were respectively entered in favor of the respective plaintiffs against the defendant for the amount, thereof, with interest and costs. "'

The questions presented in these cases, or rather in No. 7, are quite different from those, arising on the appeals in the Lambert and other Johnston cases. Here, the respective judgment rolls merely show on this point proof of service on the Insurance Commissioner and an allegation in the verified complaint that, the company was doing business within the State. We may nqt take judicial notice of the statutes of the foreign State ; but the courts of that State could take judicial notice of their own statutes and it was not essential to the validity of the judgments that the statutes prescribing the manner in which the service of process should be made should be either incorporated in or referred to in the judgment roll. When, in such case, the sufficiency of the service, as a compliance with the statute regulating the same, is questioned collaterally in another jurisdiction it is, of course, competent to present the statute to the court in which the jurisdiction is attacked, as was done in this case. (Pringle v. Woolworth, 90 N. Y. 502.) The defendant either complied with the condition of the statute of North Carolina (Public Laws of N. C. of 1899, chap. 54, § 62, subd. 3), imposing as a condition on its right to do business within that State that it first file with the Commissioner of Insurance authority as its attorney for the service cf process within that State, or it violated the law in continuing to do buisness in that sovereignty. The allegations of the verified complaints that the defendant was doing business within the State of North Carolina were sufficient to show that, jurisdiction over it there in personam could be obtained. (Sheldon v. Wright, 5 N. Y. 497; cited with approval, Matter of Baker, 173 id. 249; Dyckman v. Mayor, etc., of New Work, 5 id. 434; Develin v. Cooper, 84 id. 410; Applegate v. Lexington, etc., Mining Co., 117 U. S. 255; Matter of Lennon, 166 id. 548; Galpin v. Page, 18 Wall. 350.) Since it was doing business within that State, as. [554]*554shown by the verified complaint, it will be presumed, that it had complied with the law (Pringle v. Woolworth, supra), and, there- . fore, the • re-cord showing service upon the Commissioner of Insurance, thus presumed to have been authorized to receive process'for the defendant, was sufficient to give the court jurisdiction oyer defendant in personam., ■

Of course, the judgment was open to collateral attack here upon the ground that the court did not obtain jurisdiction over the defendant. (Ferguson v. Crawford, 70 N. Y. 253 ; Hunt v. Hunt, 72 id. 217.) It would have been competent for the defendant, therefore, to have shown that the service was not made as recited in the judgment roll; and it was also competent for it to show, as it attempted to show in the City-Court, that it was not doing business in the State- of North Carolina as alleged; but the sufficiency of the evidence on that point need not be considered, for the plaintiff showed that it had in fact filed the, power. of attorney ' with the Commissioner of Insurance,- and this, under the statute of North Carolina as construed by the courts of that State, by the Supreme ' Court of the United States, and by our Court of Appeals (Biggs v. Life Association, 128 N. C. 5; Moore v. Life Association, 129 id. 31; Mutual Reserve Fund Life Association v. Phelps, 190 U. S. 147; Woodward

Free access — add to your briefcase to read the full text and ask questions with AI

Johnston v. Mutual Reserve Life Insurance, 104 A.D. 550, 93 N.Y.S. 1052 (N.Y. Ct. App. 1905).

104 A.D. 550 (Johnston v. Mutual Reserve Life Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Smith v. Compania Litografica De La Habana
121 Misc. 368 (New York Supreme Court, 1923)
Callahan v. Levin & Levin Contracting Co.
153 A.D. 71 (Appellate Division of the Supreme Court of New York, 1912)