Lee v. Fraternal Mutual Insurance

1 Handy 217
CourtOhio Superior Court, Cincinnati
DecidedNovember 15, 1854
StatusPublished
Cited by1 cases

This text of 1 Handy 217 (Lee v. Fraternal Mutual Insurance) is published on Counsel Stack Legal Research, covering Ohio Superior Court, Cincinnati primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee v. Fraternal Mutual Insurance, 1 Handy 217 (Ohio Super. Ct. 1854).

Opinion

' Spencer, J.

The petition in this case sets forth, that on the 25th day of February 1853, the Fraternal Mutual Insurance Company, a corporation created by the laws of Ohio, issued a policy of insurance to Bichard H. Lee, whereby, in consideration of $29.50 then paid, and of the annual premium of $114, to be paid upon the 25th day of February in each year thereafter, they agreed to insure the life of said Lee, for the sole use and benefit of the plaintiff, his wife, for the term of seven years thereafter, in the sum of $5000, to be paid to her, in the event of his death [218]*218during said period, within ninety days after due notice and proof of such death. That Richard died oh the 21st day of July thereafter; and that on the 14th of October following, due notice and proof of his death were given to said company. That all the conditions, stipulations, agreements &c., in said policy contained, and on the part of said Richard and wife to be fulfilled, have been, and were in all things faithfully complied with. And although more than 90 days have since elapsed &c., yet said sum of $5000 remains wholly unpaid.

The petition further sets forth, that on the 1st October 1852, an agreement was entered into between the said company and their co-defendants, the said United States Life Insurance Annuity and Trust Company, (a corporation created by the laws of Pennsylvania, but doing business in Cincinnati,) whereby the former sold and transferred to the latter all all its property, assets, and business, and agreed thereafter to transact all its business in its own name, but for the sole profit, and at the entire expense of the latter company — they to indemnify the former, against all losses accruing upon risks assumed, &c. The effect of which agreement, it is alleged, is to render the latter company liable to the plaintiff for the loss arising under the policy aforesaid.

The petition further sets forth, that in pursuance of the charter of the- Fraternal Mutual Co., John L. Vattier, Richard Conkling, and the other defendants in said cause, executed their several promissory notes, for various sums, amounting in all to $48,000, being for premiums in advance, for policies issued, or to be issued to them by said company; said notes being intended under said charter, to provide a fund for the payment of losses incurred by [219]*219the company in default of other funds to meet the same, which several notes were afterwards surrendered to the respective makers thereof, without consideration, and in violation of the plaintiff’s rights.

The petition finally avers, that, notwithstanding the premises, the defendants refuse to pay the said sum due plaintiff by the terms of said policy; wherefore she demands a judgment against them for the sum of $5000, and interest, from the 13 th day of January last.

The Fraternal Mutual Insurance Company being in default for answer, a judgment was entered up against her by the Court of Common Pleas, on the 4th day of March 1854, in favor of the plaintiff, for the amount claimed in the petition, with costs, upon which an execution has been issued, as appears from the transcript, &c.

On the 14th April, the plaintiff filed an amended and supplemental petition, setting forth, that on the 24th day of February 1853, The United States Life Irisurance Annuity and Trust Co., in pursuance of the agreement of 1st October 1853, issued a policy of re-insurance to The Fraternal Mutual Co., whereby, in consideration of said agreement, and of the sum of $28.50 then paid, and of the quarterly premium of $28,50 to be paid on the 24th days of May, August, November, and February, in every year thereafter, they insured the life of said Richard H. Lee, to John L. Vattier, president of the Fraternal Mutual Co., and Stephen Crawford, president of said U. S. Life Ins. Ann. & Trust Co. in trust for the said Fraternal Mutual Co., in the sum of $5000, for seven years thereafter, to be paid in 90 days after due notice and proof of death, &c. That due notice and proof of such death were given on the 19th day of October 1853. That all the [220]*220conditions, stipulations, agreements &c. in said policy contained, on the part of said Lee, and of said Fraternal Mutual Ins. Co., to be performed, were fully complied with and observed. And that on the 18th day of March last, the Fraternal Mutual Co., for a valuable consideration, assigned to the plaintiff all her interest in said policy, and the money insured thereby.

The amended petition further sets forth, that at the time of the surrender, by the Fraternal Mutual Co., of the stock notes given by Yattier, and his co-defendants, and in consideration thereof, The U. S. Life Ins. Ann. & Trust Co., as a substitute therefor, and as an indemnity to said defendants, gave its bond to the Frat. Mut. Co., in the sum of $50,000, as a guaranty for the payment of all losses accruing upon policies issued, or to be issued by the Frat. Mut. Co.; the2 effect of which is, (as is alleged,) to render the II. S. Ins. Co. liable to the plaintiff for the payment of said loss.

The amended petition finally avers, that the U. S: Ins. Co. have not paid the said sum, in whole, or in part; wherefore judgment is claimed against her, as in original petition demanded.

The answer of the U. S. Life Ins. Ann. & Trust Co. was filed on the 2d day of May last, admitting all the material allegations of the petition, (except as hereinafter stated.) It sets forth a copy of the contract of the 1st October 1852, in ten articles.

Abt. I. Purports to transfer to the foreign company the charter of incorporation, and all the powers, functions, privileges, and franchises incident thereto, of the Home Company, authorizing the exercise of the same by the foreign company.

[221]*221Art. II. Provides for the continuance in office of the present board of directors of the Home Company, so long as mutually agreeable; to be re-elected, displaced, and replaced, at the option of the foreign company.

Art. III. Subjects the business of the Home Company wholly to the regulations of the foreign company.

Art. IV. Requires the Home office to demand on future policies the payment of premiums in cash, and to remit all premiums received to the foreign company.

Art. V. Transfers all moneys and notes received from policies issued to the foreign office.

Art. VI. Provides that the foreign company shall share one half the profits arisingfrom compromises of losses, at less than their full amount, arising on policies previously issued.

Art. VII. Transfers all the moneys, bills receivable, accruing premiums, property, and effects of the Home Company, amounting in all to $8465.40, and also all papers, blanks, books, &c., relating to the business thereof, to the foreign office.

Art. VIII. Binds the foreign office to the payment of $2050, (or 479.02 over the cash received.)

Art: IX Binds the foreign company to assume all outstanding risks upon policies issued, and io be issued; and by way of indemnity, to issue policies of re-insurance to the presidents of both companies, in trust for the Home Company.

Art. X. Binds the foreign company to prosecute the business of insurance in the city of Cincinnati with fairness and vigor, as contemplated by the charter of the Home Company.

The answer admits the validity

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Bluebook (online)
1 Handy 217, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-fraternal-mutual-insurance-ohsuperctcinci-1854.