Joyce v. Federal Crop Insurance

356 F. Supp. 928, 1973 U.S. Dist. LEXIS 14705
CourtDistrict Court, E.D. Missouri
DecidedMarch 1, 1973
DocketNo. S 72 C 4
StatusPublished
Cited by1 cases

This text of 356 F. Supp. 928 (Joyce v. Federal Crop Insurance) is published on Counsel Stack Legal Research, covering District Court, E.D. Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Joyce v. Federal Crop Insurance, 356 F. Supp. 928, 1973 U.S. Dist. LEXIS 14705 (E.D. Mo. 1973).

Opinion

MEMORANDUM

WANGELIN, District Judge.

This action is before the Court upon the motion of the defendant, Federal Crop Insurance Corporation, for summary judgment pursuant to Rule 56, Federal Rules of Civil Procedure.

This action originally was commenced in the Circuit Court of New Madrid County, Missouri, on December 30, 1971, and was removed to this Court pursuant to 28 U.S.C. § 1441(a). The petition for [929]*929removal was filed January 27, 1972; it recites that service of plaintiff’s petition was made on defendant on December 30, 1971.

Plaintiff alleges in his petition that he is a resident of New Madrid County, Missouri; that his cause of action arose in New Madrid County; that defendant issued its policy of hail insurance on plaintiff’s crops, policy No. 44-103-00366; that all premiums were paid and the policy was in effect on May 27, 1968, when plaintiff sustained hail damages to his cotton crop; that plaintiff has given proper notice to the defendant of said damage and has provided proof of same ; that plaintiff requested $5,000.00 due and payable under the policy; that defendant has denied this claim. Plaintiff prays for $5,000.00 actual damages, interest, additional damages of $500.00 for vexatious delay in payment, and attorney’s fees.

On March 7, 1972, defendant answered alleging, inter alia, (1) that the cause of action did not arise in New Madrid County, (2) that the notice and claim of loss were not properly submitted, (3) that, if the notice and claim of loss were -properly submitted, plaintiff would be entitled to $216.09, (4) that this action was not timely filed, and (5) that the Court is without subject matter jurisdiction.

On October 2, 1972, defendant moved for summary judgment and submitted in support of its motion the affidavit of Robert C. Zeller, Director, National Service Office, Federal Crop Insurance Corporation, who states that he keeps and maintains in the regular course of business copies of records, memoranda and correspondence relating to Federal Crop Insurance Contract Number 44-103-366 entered into between defendant and plaintiff. To his affidavit are attached copies of the following documents as exhibits: No. 1, plaintiff’s application for the subject insurance; No. 2, the applicable contract provisions; No. 3, the applicable cotton endorsement; No. 4, plaintiff’s acreage report; No. 5, plaintiff’s notice of damage or loss dated May 22, 1968; No. 6, the preliminary-inspection report dated May 28, 1968; No. 7, a second inspection report also dated May 28, 1968; No. 8, a second notice of damage or loss; No. 9, a claim for indemnity; No. 10, a notice of indemnity mailed to plaintiff; No. 11, a notice of damage or loss dated April 30, 1969; No. 12, a letter dated May 1, 1969, to plaintiff from defendant; and No. 13, a letter dated November 19, 1969, from plaintiff to defendant.

Plaintiff has filed nothing in response to defendant’s motion for summary judgment.

By its exemplary brief filed in support of its motion, defendant asserts that (a) plaintiff failed to file a timely notice of loss and a timely claim for indemnity, (b) plaintiff failed to bring suit within the one year statute of limitations, and (c) the Circuit Court of New Madrid County did not have subject matter jurisdiction of the action when originally filed.

The defendant is an agency of and within the Department of Agriculture. 7 U.S.C. § 1503. It has as a purpose the implementation of a sound system of crop insurance. 7 U.S.C. § 1502. It is authorized to adopt rules and regulations for the governance and the conduct of its business. 7 U.S.C. § 1506(e). Contracts of crop insurance result from the acceptance by defendant of a farmer’s application for said insurance. 7 CFR § 401.106. The insurance contract includes the terms of the policy found at 7 CFR § 401.111, the endorsements for the crops covered by the contract, the county acturial tables as defined in the policy, and the application. Ibid.

Pursuant to paragraph 8(b) of the policy, if a crop loss is to be claimed, notice is required to be given not later than fifteen days after the threshing or harvesting of the insured unit crop or by the end of the insurance period. [930]*930Plaintiff’s application was for insurance on a cotton crop (Exhibit 1) in 2 units of 22.1 acres and 38.5 acres respectively (Exhibit 4). Under the applicable'cotton endorsement the end of the insurance period is December 15. 7 CFR § 401.136(4).

Under paragraph 11(a) of the insurance policy the insured is required to file a claim for an alleged loss not later than 60 days after the time of loss. “Time of loss” is defined by paragraph 10 as “the end of the insurance period unless the entire crop on the insurance unit is destroyed earlier, in which event the loss shall be deemed to have occurred on the date of such destruction as determined by the [defendant].” By his petition plaintiff alleges that he sustained hail damage to his cotton crop on or about May 27, 1968.

On May 22, 1968, plaintiff reported to defendant that he had suffered substantial damage or loss under the subject contract due to excess moisture with respect to insured units 1 and 2. Exhibit 5.

On May 28, 1968, defendant inspected the unit 1 acreage, determined that an insured loss on the unit was probable and released the acreage from cotton for the purpose of planting it in soybeans. Exhibit 6. That same day unit 2 was inspected and 24.6 of the 38.8 acres were released, to be planted in soybeans. The remaining 14.2 acres were not appraised for other use; the condition of these acres was considered to be fair. Exhibit 7. Exhibit 7 also bears the language: “Any further damages or loss must be reported to the county office and any claim for loss must be signed within the time specified in the insurance contract.” This statement is followed by the initials “C. J.” indicating that plaintiff was aware of this last quoted statement.

On June 18, 1968, plaintiff reported a second loss on unit 1 (Exhibit 8) and on July 6, 1968, he submitted a claim for loss (Exhibit 9). An indemnity in the amount of $222.24 was paid to plaintiff on this unit. Exhibit 10.

On April 30, 1969, plaintiff reported a loss on unit 2. Exhibit 11. This exhibit recites in the Remarks section

Insured reported he had just finished harvesting due to adverse weather conditions and thought this was the time to report when he had finished. He was advised this was a delayed claim and unless the time was extended claim would be rejected, but the notice would be sent to State office for a decision.

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Cite This Page — Counsel Stack

Bluebook (online)
356 F. Supp. 928, 1973 U.S. Dist. LEXIS 14705, Counsel Stack Legal Research, https://law.counselstack.com/opinion/joyce-v-federal-crop-insurance-moed-1973.