Sanford Manufacturing Co. v. Western Mutual Fire Insurance

282 N.W. 771, 225 Iowa 1018
CourtSupreme Court of Iowa
DecidedDecember 13, 1938
DocketNo. 44137.
StatusPublished
Cited by4 cases

This text of 282 N.W. 771 (Sanford Manufacturing Co. v. Western Mutual Fire Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sanford Manufacturing Co. v. Western Mutual Fire Insurance, 282 N.W. 771, 225 Iowa 1018 (iowa 1938).

Opinion

Donegan, J.

— During the times here involved, Fred A. Hermann was doing business as the Motor Freight Terminal of Des Moines, Iowa, and, as such, was engaged in receiving, storing, and forwarding goods and merchandise. As owner and operator of such Motor Freight Terminal, he held two policies of fire insurance against loss or damage to goods and merchandise of every kind while stored in the warehouse of said Motor Freight Terminal. On July 15, 1936, a shipment of ink belonging to Sanford Manufacturing Company, which had been delivered to and stored in the warehouse of the Motor Freight Terminal, was destroyed by fire. On June 10, 1937, Sanford Manufacturing Company instituted the instant action against the insurer, Western Mutual Fire Insurance Company, to recover the value of the property thus destroyed.

The petition filed by plaintiff was in two counts. Count I, after stating the facts above set out and describing the building used as a warehouse, alleged that the fire and destruction of plaintiff’s property were caused by the negligence of Fred A. Hermann, doing business as Motor Freight Terminal, set out several specific grounds of negligence on the part of said Hermann, and alleged plaintiff’s freedom from contributory negligence. Count I also alleged the issuance and existence of the fire insurance policies and that said policies contained the following provision:

“The Policy is hereby amended and extended to provide that any person, firm, association or corporation having a right of action under the policy against the assured may, when service cannot be obtained on said assured within the state of Iowa, bring action for recovery directly upon such policy and against the insurer that issued such policy.”

Count I further alleged that plaintiff had been unable to obtain service on Fred A. Hermann, the assured, within the state of Iowa, and asked judgment for the reasonable value of the property destroyed. In Count II of the petition, all allegations as to the negligence of Fred A. Hermann, and freedom of plaintiff from contributory negligence were omitted, and no *1020 reference was made to the provision of the policies set out in Count I, authorizing action directly against the insurer when service could not be obtained on the assured within this state. The other allegations of Count I were made part of Count II, by reference, and, in addition, it was alleged that the policies were valid and in full force on July 15, 1936, and insured against loss by fire “merchandise of all kinds, property of assured and for which assured may be legally liable while contained in the one story, composition roof, frame building, located at 400 S. W. 5th Street or within 50 feet (50') thereof, occupied as Truck Depot, Des Moines, Iowa.” Count II further alleged that the Motor Freight Terminal was legally liable for the goods of plaintiff stored in its warehouse, and that such goods were destroyed by fire while stored in such warehouse, and asked judgment for the value thereof.

It will be noted that this action was brought against the insurer, Western Mutual Fire Insurance Company, only, and that Fred A. Hermann, doing business as Motor Freight Terminal, is not a party. The original notice was served personally on the defendant, Western Mutual Fire Insurance Company, on the first day of May, 1937. On the third day of July, 1937, the defendant filed a special appearance and motion to dismiss, supported by affidavits. The grounds of this motion were, in substance, that Fred A. Hermann, doing business as Motor Freight Terminal of Des Moines, Iowa, was at all times a resident of the State of Iowa; that, with the exception of the period from March 29 to May 10, 1937, during which he and his family were out of the state on a vacation trip, personal service could have been made upon him in the city of Des Moines; that the plaintiff’s attorneys were apprised of these facts by defendant’s attorneys and assured that, when said Hermann returned, defendant’s attorneys would either present him for service or have service accepted by him. Other grounds of the special appearance and motion to dismiss go to^ the proposition that the provision in the insurance policies in regard to bringing suit directly against the insurer, when service cannot be obtained upon the assured within the state of Iowa, is applicable only where the assured is a motor carrier and, as such, subject to the rules and regulations of the Board of Railroad Commissioners of the state of Iowa; that, under the statutes and laws of this state, Fred A. Hermann, doing business as Motor Freight Terminal of Des *1021 Moines, Iowa, was neither a common carrier nor a motor carrier, and was not subject to the rules and regulations adopted and promulgated by the Iowa Board of Railroad Commissioners; and that the provision of the insurance policies, authorizing the bringing of actions directly against the insurer, does not authorize the bringing of the instant action against defendant, and the court had no jurisdiction in this action. On hearing, defendant’s special appearance and motion to dismiss were overruled and defendant was given fifteen days to plead or answer. From this order the defendant has appealed.

It will be noted that all of the grounds alleged by the defendant in support of its special appearance and motion to dismiss are directed to Count I of the petition, in which plaintiff sues the insurance company directly, because, as it alleges, service could not be made upon the assured within the state of Iowa. In appellant’s brief and argument, all the grounds of error relied upon for reversal are likewise based upon the alleged fact that the assured was a resident of the state of Iowa and that service could have been made upon him in this state, and that there was, therefore, no authority for bringing the action against and making service on the insurance company; and also upon the legal proposition that Fred A. Hermann, doing business as Motor Freight Terminal, was not, under the statutes and laws of this state, subject to the rules and regulations of the Iowa Board of Railroad Commissioners, and the provision of the policies authorizing suit directly against and service of notice on the insured had no application in this case and the court had no jurisdiction. The brief and argument of the appellee calls attention to this situation and to the fact that no attack whatever is made, either in the special appearance and motion to dismiss or in the appellant’s brief and argument, on the cause of action set out in the second count of the petition. Appellee contends that, as no question is raised as to the jurisdiction of the court to consider and determine the cause of action pleaded in the second count of the petition, and as it alleges a good cause of action, there could have been no error in the order of the trial court overruling the special appearance and motion to dismiss. In its reply brief and argument the appellant admits that neither the special appearance and motion to dismiss, nor the errors relied upon for reversal in this court, have questioned the court’s jurisdiction as to the second count of the petition.

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Bluebook (online)
282 N.W. 771, 225 Iowa 1018, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanford-manufacturing-co-v-western-mutual-fire-insurance-iowa-1938.