Seaboard Air-Line Railway v. Insurance Co. of North America

89 S.E. 438, 18 Ga. App. 341, 1916 Ga. App. LEXIS 351
CourtCourt of Appeals of Georgia
DecidedJune 30, 1916
Docket6962
StatusPublished
Cited by4 cases

This text of 89 S.E. 438 (Seaboard Air-Line Railway v. Insurance Co. of North America) is published on Counsel Stack Legal Research, covering Court of Appeals of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Seaboard Air-Line Railway v. Insurance Co. of North America, 89 S.E. 438, 18 Ga. App. 341, 1916 Ga. App. LEXIS 351 (Ga. Ct. App. 1916).

Opinion

Hodges, J.

It appears, from the agreed statement of facts, that J. O. and H. B. Swearingen composed a firm conducting business under the. name of Elberton Planing Mills, and they owned a planing mill, and other buildings, to which the Seaboard Air-Line Railway set fire. After the fire the1 Swearingens and the Elberton Planing Mills entered into an agreement of subrogation with the Insurance Company of North America, whereby, in consideration. [343]*343of the payment of certain amounts of insurance carried by the company on a certain frame barn and two frame dwelling-houses on McDonough street, Elberton, Georgia, the company was subrogated to their rights as to these items. The railway company, by sparks emitted from one of its locomotives, destroyed the planing' mill and its contents, and injured and damaged the property covered by the policies of insurance. After making the agreement of subrogation with the insurance company a suit was brought by' J. C. and H. B. Swearingen for certain items of damage, and suit was brought by the Elberton Planing Mills for certain other items of damage against the railway company. These two suits did not cover and include the items of damage claimed by the insurance company under its alleged right of subrogation and the agreement made by the Swearingens and the Elberton Planing Mills before the bringing of the two suits described above, but, on the contrary, the items of damage for which the insurance company claimed the right of subrogation were expressly excluded in these last-mentioned suits. Judgments were recovered in behalf of the Swearingens and the Elberton Planing Mills, which the railway company paid. On the trial of the suit filed by the insurance company the Tailway company pleaded that the insurance company was concluded and bound by the payments already made on account of the fire, and that, as to the insurance company, all matters and things that were put in issue upon the trial of the cases brought by the Swearingens and the Elberton Planing Mills, or that could have been put in issue, were res adjudicata, the railway company contending that the insurance company was concluded as-to its rights, if any it had, as a privy of the Swearingens and the Elberton Planing Mills. Judgment was rendered in favor of the insurance company against the railway company.

1. Under the law, the insurance company, having paid the insurance, had the right of subrogation under the insurance contract, and parties to the insurance contracts made agreements recognizing the right of the insurance company to subrogation some time in June, 1911, before the filing of suit against the railway company by any one for damages accruing out of this fire. Whatever rights the insurance company had by way of subrogation (under the agreed statement of facts upon which this, case was adjudicated by the trial court) accrued to the insurance company [344]*344at the time of its payment of the insurance money to the insured and at the time of the making of the subrogation agreement between the Swearingens and the Elberton Planing Mills,and the Insurance Company of North America. It will be observed that the Swearingens composed the firm conducting business under the name of the Elberton Planing Mills, .and that they brought two separate actions for the single cause, and recovered in the two actions. In the last case the railway company pleaded res adjudícala, and, judgment being rendered against the company on the plea, for reasons satisfactory to the railway company this judgment was paid.

It can not be questioned that the insurance company had a right of subrogation under the contract of insurance and under the law, and with the Swearingens and the Elberton Planing Mills by agreement in writing, made before the bringing of any suit. It is insisted by the plaintiff in error that this right of subrogation was destroyed by the act of the Swearingens and the Elberton Planing Mills in bringing the two suits against the railway company; in other words, that the judgments rendered in the litigation arising on account of the fire concluded the rights of the insurance company on all the issues before the court or that could have been passed upon by the court upon these trials. We' do not think that this is the law. It can not be conceived how the Swearingens and the Elberton Planing Mills could in any way place before the jury legally, on the trial of their litigation with the railway company, the right to damages in behalf of the insurance company, held by it by way of subrogation. The insurance company had ■the right of subrogation under the law, and took an agreement from the Swearingens and the Elberton Planing Mills, recognizing that right. Why could not the insurance company maintain a suit upon the right which accrued to it upon the payment of the insurance money and the making of the agreement antedating the bringing of the suits by the Swearingens and the Elberton Planing Mills? In our opinion, the insurance company is not precluded from enforcing its right of subrogation by the fact that its predecessors, the Swearingens and the Elberton Planing Mills, had sued and recovered a judgment against the defendant railway company for the same cause of action. It will be observed that though it. was the same cause of action, there were different items [345]*345of damages, and three of these items, being covered by the three policies carried by the insurance company, were held by the insurance company by right of subrogation, and that this right accrued to it and was recognized by the Swearingens and the Elberton Planing Mills before any suit'was brought against the railway company, and the title to this right of subrogation vested in the insurance company, under the terms of the contract of insurance and the agreement of the Swearingens and the Elberton Planing Mills before these parties took any action whatever looking to the recovery of the items of damages remaining to them. In the suits filed by the Swearingens and the Elberton Planing Mills the items claimed by the insurance company were expressly excluded, and it can not be said that the plaintiffs in these two suits could have legally put in issue before- the court on these trials the items of damage claimed by the insurance company. The principle of law which it seems to us controls this proposition has been long recognized in Georgia: “Where the doctrine of lis pendens applies, privies are concluded by a final judgment on the merits in.a ease pending when they purchased; but there is, perhaps, no instance in the whole law where privies in estate are held affected by the result of litigation in a suit commenced by or against a predecessor in the title after he has transmitted all the title he ever had.” Rucker v. Womack, 55 Ga. 401. The same principle enunciated by Judge Bleckley in the case last cited was applied by Justice Cobb in the case of Marshall v. Charland, 106 Ga. 42 (31 S. E. 791), in which the court says: “The title of the claimant under the proceedings setting apart to her'a year’s support having been acquired before the suit was filed to enforce a special lien on the property set apart to her, she would not be precluded, under the operation of the doctrine of lis pendens, from attacking for usury the deed which is relied upon as the foundation of the lien sought to be enforced under a judgment rendered on proceedings begun after title to the year’s support had vested in her.

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

Related

Massey v. Stephens
270 S.E.2d 796 (Court of Appeals of Georgia, 1980)
Cooper v. Public Finance Corp.
246 S.E.2d 684 (Court of Appeals of Georgia, 1978)
Life & Casualty Insurance v. Webb
145 S.E.2d 63 (Court of Appeals of Georgia, 1965)
Burns v. Brickle
126 S.E.2d 633 (Court of Appeals of Georgia, 1962)

Cite This Page — Counsel Stack

Bluebook (online)
89 S.E. 438, 18 Ga. App. 341, 1916 Ga. App. LEXIS 351, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seaboard-air-line-railway-v-insurance-co-of-north-america-gactapp-1916.