Ruffner Bros. v. Dutchess Insurance

53 S.E. 943, 59 W. Va. 432, 1906 W. Va. LEXIS 126
CourtWest Virginia Supreme Court
DecidedApril 17, 1906
StatusPublished
Cited by24 cases

This text of 53 S.E. 943 (Ruffner Bros. v. Dutchess Insurance) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ruffner Bros. v. Dutchess Insurance, 53 S.E. 943, 59 W. Va. 432, 1906 W. Va. LEXIS 126 (W. Va. 1906).

Opinions

POEEENBARGER, JUDGE:

The Dutchess Insurance Company complains of a judgment for the sum of $649.12, rendered against it by the circuit court of Kanawha county, on the 27th day of March, 1905,-in favor of Ruffner Brothers, assignees of A. Haws and his son, H. H. Haws, who were doing business as The Haws Company.

The policy of insurance, under which the loss, sustained by The Haws. Company, occurred, had covered a frame store building; a stock of general merchandise kept therein, and [434]*434the store and office furniture and fixtures. The stock of goods so insured was entirely new at the time of the issuance of the policy. After the policy had been in force a short time, an addition to the building in which the store was kept was made for the accommodation of a steam grist mill, and the mill installed therein and operated to an extent not clearly indicated, before the fire occurred. In the meantime, Haws had attempted to obtain insurance on the mill from the agents from whom he had secured the policy on the store. They had declined it, and he had vainly tried to obtain it from another agency. Some days before the fire occurred, a member of the firm of Lohmeyer and Goshorn, the agents, had informed him they would give him no insurance on the mill, but they would carry his store at a six per cent rate, which was an increase of four per cent over that of the policy he then had.

The defenses relied upon by the defendant were two in number: first, non-compliance with that part of the Iron Safe 'Clause which required an inventory to be made within thirty days from the issuance of the policy, unless one had been taken within twelve calendar months prior to the date of its issue; and, second, violation of that clause of the policy which declared it would become void if the hazard should be increased by any means within the control or knowledge of the insured, unless permitted or waived by an endorsement on the policy or attached thereto.

As constituting substantial compliance with the requirement of an inventory, the plaintiff relied upon his invoices or bills. He reasonably contended that, it being a new store, the first lot of goods having been placed in it but a few days before the issuance of the policy, these bills constituted a complete list, by items, with the values annexed, of all the goods that had been put into the store. At the date on which the first lot was taken into the store and put upon the shelves, the invoices therefor, made up as complete and accurate a list of the goods as if they had been re-listed into a book. All goods subsequently put in, for which bills were likewise received and kept, were additions to the stock. The purpose and object of an invoice is not very clearly defined in insurance law. Most of the courts, in dealing with it, simply refer to the legal definition of the term inventory. This falls [435]*435far short of indicating what it is intended for, the function it performs between the parties. It seems to me perfectly plain that the requirement is intended to secure, in the interest of the insurance company, and possibly both parties, a basis, or starting point, upon which to found an estimate of the value of the stock in case of a loss. It, of itself, indicates nothing except the quantum and value of the stock at the time of the taking thereof. It does not indicate what they amounted to at any previous or subsequent date, nor the average stock. Having an inventory at a given date, however, and the invoices for goods subsequently put in, the determination of the aggregate value of all the goods in the store at the date of the inventory and those subsequently put in, is a mere matter of addition. All insurance policies on merchandise require the production of the invoices as well as the inventory. Another requirement which goes with the inventory and the bills, as an ally, in working out the estimate, is the book in which the account of sales is kept. After ascertaining, from the inventory and the bills for the goods subsequently put in, the aggregate as above stated, the quantities and values of the goods sold out of the store are deducted, and thus a fair and reasonable indication, as to the quantities and value of the goods at the date of the fire, is obtained. The three clauses of the iron safe provision require the inventory and keeping of the books and their protection by means of the iron safe. In determining what they mean, what more reasonable view could be taken than that they must be all construed together? Some courts exclude the invoices and deny to them the force and effect of an inventory, upon the fanciful ground that they are no index to the value of the goods. What better evidence of the value of the goods could there possibly be than the bills showing what they had cost? They show the value as agreed upon between the owner of the store and a disinterested third party, while an inventory would show the value according to an estimate put upon them by an interested party, knowing that an inventory was made for the purpose of forming the basis of a claim against the insurance company. I am utterly unable to see any force in that contention. Of course the invoices would not constitute an inventory in the case of a store which has been running for a considerable time. They would [436]*436not afford any basis upon which to begin the estimate, but in the case of a new store starting simultaneously with the issuance of the policy, or practically so, the first bill constitutes as good a basis for the beginning of the estimate as an inventory could possibly afford. It has been suggested in one or two instances that, if the bills were pinned together and some endorsement made upon them, indicating an intention to treat them as an inventory, they might, on the theory of substantial compliance, be deemed to constitute an inventory. In other words, they constitute an inventory if they are indorsed “inventory) ” otherwise they do not. This, to my mind, puts more merit into the name of the thing than it is entitled to. It sacrifices substance to mere form and technicality. What is an inventory, is to be determined in view of the peculiar circumstances of the case. What would substantially comply with the requirement in one case would not in another in which the circumstances are wholly different. For these reasons, we are unwilling to follow Insurance Co. v. Knight, 36 S. E. 821, Fire Association v. Mosterson, 25 Tex. Civ. App. 518, and the Mississippi case in which the proposition advanced by the attorneys for the plaintiff in error arose, and we hold that the evidence is sufficient to sustain the .finding of the jury in favor of the plaintiff on the first issue.

The violation of the clause against increase of hazard is admitted, but it is insisted that there was a waiver on the part of the defendant. The claim of waiver is px-edicated upon the knowledge which the agent of the defendant company had, at the time of the issuance of the policy, of the intention of the insured to build the addition to the store house and install a grist mill in it, and of the actual consummation of this design before the fire occurred, and upon a letter written by them to the insured, dated the day of the fire, but received on the day after that occurrence. The store was destroyed about ten o’clock on the night of December 23rd, and the letter was postmarked 1:30 a. m., December 24th. It reads as follows:

“A. Haws Esq City: — Dear Sir — We again call your attention to policy No. 3319 Dutchess Insurance Company covering on your building, stock and fixtures, which has not yet been returned to us for cancellation. We desire now to

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

Related

Prichard v. Prichard
65 S.E.2d 65 (West Virginia Supreme Court, 1951)
Koblegard Co. v. Maxwell
34 S.E.2d 116 (West Virginia Supreme Court, 1945)
Dickerson v. Franklin Nat. Ins.
130 F.2d 35 (Fourth Circuit, 1942)
Kelmenson v. British America Assurance Co.
171 S.E. 904 (West Virginia Supreme Court, 1933)
Clise v. Prunty
163 S.E. 864 (West Virginia Supreme Court, 1932)
United States Merchants & Shippers Insurance v. Klipper
228 A.D. 330 (Appellate Division of the Supreme Court of New York, 1930)
Gray v. N. & W. Railway Co.
130 S.E. 139 (West Virginia Supreme Court, 1925)
Fidelity Deposit Co. of Maryland v. Wood
1923 OK 13 (Supreme Court of Oklahoma, 1923)
Dunbar Tire & Rubber Co. v. Crissey
114 S.E. 804 (West Virginia Supreme Court, 1922)
State v. Cunningham
111 S.E. 835 (West Virginia Supreme Court, 1922)
Hartford Fire Ins. Co. v. Walker
210 S.W. 682 (Texas Commission of Appeals, 1919)
Pouns v. Citizens' Fire Ins.
80 So. 672 (Supreme Court of Louisiana, 1919)
Morstad v. Atchison, T. & S. F. Ry Co.
170 P. 886 (New Mexico Supreme Court, 1918)
Westchester Fire Ins. Co. v. McMinn
198 S.W. 638 (Court of Appeals of Texas, 1917)
Fisher v. Sun Insurance
83 S.E. 729 (West Virginia Supreme Court, 1914)
Day v. Home Insurance
58 So. 549 (Supreme Court of Alabama, 1912)
Weeks v. Chesapeake & Ohio Railway Co.
69 S.E. 805 (West Virginia Supreme Court, 1910)

Cite This Page — Counsel Stack

Bluebook (online)
53 S.E. 943, 59 W. Va. 432, 1906 W. Va. LEXIS 126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ruffner-bros-v-dutchess-insurance-wva-1906.