Regan v. N. York and N. England R. R. Co.

22 A. 503, 60 Conn. 124, 1891 Conn. LEXIS 19
CourtSupreme Court of Connecticut
DecidedMarch 4, 1891
StatusPublished
Cited by43 cases

This text of 22 A. 503 (Regan v. N. York and N. England R. R. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Regan v. N. York and N. England R. R. Co., 22 A. 503, 60 Conn. 124, 1891 Conn. LEXIS 19 (Colo. 1891).

Opinion

Loomis, J.

This is a complaint to recover damages for the loss of goods belonging to the plaintiff, which on the 13th day of July, 1889, were destroyed by a fire communicated by a locomotive engine belonging to and in the use of the defendant corporation.

The action is predicated upon section 3581 of the General Statutes, which provides as follows: — “ When any injury is done to a building or other property of any person, by fire communicated by a locomotive engine of any railroad company, without contributory negligence on the part of the person entitled to the care and possession of the property injured, the said railroad company shall be held responsible in damages to the extent of such injury to the person so injured; and every railroad company shall have an insurable interest in the property for which it may be so held responsible in damages along its route, and may procure insurance thereon in its own behalf.” The defendant suffered a default and a hearing in damages was had before the court.

The court found all the facts essential to a recovery of compensatory damages, and assessed as such damages the sum of thirteen thousand and ninety-one dollars and ninety-five cents, and rendered judgment for the plaintiff to recover that sum of the defendant, and his cost.

Upon the hearing the counsel for the defendant inquired of the plaintiff as a witness, if he had not received from insurance companies some compensation for the damages -to *129 said goods by said fire. This was objected to by the plaintiff and excluded by the court. Was tbis ruling erroneous?

In the first place, if we assume that under proper pleadings the defendant might be allowed a reduction equal to the amount of insurance collected by the plaintiff on the goods destroyed, we do not think it admissible as the pleadings were at the time of the hearing.

It is true that in this case there was no answer, but a default, whicli admitted the allegations of the declaration to be true; but an admission of the truth of the allegations could surely give no greater latitude of proof upon the subject of the damages than a denial. Both parties must be confined to such questions of damage and such matters of aggravation or mitigation as would naturally arise from the facts stated in the complaint. The plaintiff could not show special or consequential damages not averred and not naturally flowing from the cause of action described, nor could the defendant on the other hand have the benefit of a set-off, recoupment, or any other ground for the reduction of damages, depending on some independent transaction between the plaintiff and a third person.

The matter to be proved by the rejected evidence upon the defendant’s assumption would be a complete defense except for the default. If it equaled in amount the value of the goods it would be an absolute bar to the action, otherwise it would be a bar pro tanto.

But irrespective of the pleadings, the ruling complained of was clearly right upon the merits of the question. Any other conclusion would seem to us utterly at variance with established principles and sound reason, and contrary to an unbroken line of decisions by the courts of England and the United States.

If the defendant is entitled to have the insurance money deducted from the amount otherwise due,, it must be because it owns or has some legal claim to the money. How happens it that-the defendant corporation is entitled to this money? Not because it ever paid the premium or any part of it, nor because the policy was obtained for its benefit or *130 upon its request, nor because there is any privity between it and the insurance company. Our own court in Conn. Mutual Life Insurance Co. v. N. York, N. Haven & Hartford R. R. Co., 25 Conn., 265, held that there was no privity between the defendant whose negligence caused the death of the insured, and the insurance company who issued the policy on the life of such person, and this position accords perfectly with the law in other jurisdictions.

The defendant, instead of paying anything toward procuring the policy, by its extraordinary use of the dangerous element of fire in close proximity to the plaintiff’s property, rendered it necessary for him to pay a much larger sum to obtain his insurance than would otherwise have been required.

How then can the defendant claim, as it does, the exclusive benefit of the insurance ? It came to the plaintiff from a collateral source, wholly independent of the defendant^ and which as to him was “ res inter alios acta.” The defendant, in our judgment, has no more claim to the insurance money than it would have to money obtained upon a subscription paper which the friends of Regan may have procured to make good his loss. How can the defendant make any distinction between money raised voluntarily after the loss, and that obtained from a contract of indemnity to which it was no party, and had paid no part of the consideration?

The statute upon which the action is founded justly imposes an absolute primary liability, on the defendant for having caused the loss. But the ruling which the defandant asked for would completely nullify the statute as applicable to such a case as this, by practically imposing the primary obligation on the insurer, who is innocent, and allowing the defendant, who caused the loss and who alone could have prevented it, to go entirely free, at least to the extent of the insurance; for the insurer, having paid the money due the insured, could not get it back from him, and of course the insured, after such deduction from his damages, would have no remaining right to which the insurer could be subrogated to recover the money back again from the defendant.

*131 If the principles that underlie the defendant’s position are correct, had the loss been paid in full in ignorance of the fact that the plaintiff had obtained insurance, the defendant might bring a suit against the plaintiff to recover the money so paid; or had the money due on the policy not been paid, the defendant, after paying the loss in full, could intervene to prevent the amount due on the policy from being paid to the insured or any other than itself. What a strange sub-rogation that would be, to put the party who caused the loss in the place of the insured to enforce the contract between the latter and his insurer! And what a strange revolution would be made in the relation of the parties were we to adopt the defendant’s contention! It has hitherto been established by a line of decisions reaching backward more than a century and substantially unbroken by dissent, that there is no privity in such eases between one made primarily liable for such a loss and an insurance company; that the liability of the insurer is merely secondary; that the insurer’s position is practically that of a surety; that insurance is personal and does not inure to the benefit of one not a party thereto; and that where the insurer has indemnified the owner of the goods lost, he is entitled to be subrogated to all the means of indemnity which the owner held against the party causing the loss and primarily liable therefor.

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Cite This Page — Counsel Stack

Bluebook (online)
22 A. 503, 60 Conn. 124, 1891 Conn. LEXIS 19, Counsel Stack Legal Research, https://law.counselstack.com/opinion/regan-v-n-york-and-n-england-r-r-co-conn-1891.