St. Paul Fire & Marine Ins. v. Earnest

293 S.W. 677, 1927 Tex. App. LEXIS 161
CourtCourt of Appeals of Texas
DecidedMarch 2, 1927
DocketNo. 2781. [fn*]
StatusPublished
Cited by23 cases

This text of 293 S.W. 677 (St. Paul Fire & Marine Ins. v. Earnest) is published on Counsel Stack Legal Research, covering Court of Appeals of Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
St. Paul Fire & Marine Ins. v. Earnest, 293 S.W. 677, 1927 Tex. App. LEXIS 161 (Tex. Ct. App. 1927).

Opinions

The appellees filed this suit in the district court of Lubbock county July 20, 1926, against appellant insurance company to recover on a policy of fire insurance issued in the sum of $2,500, covering a house described in the policy. Citation was issued upon the petition and served upon J. E. Murfee, the agent of appellant, on July 21, 1926, returnable to the next regular term of said court, to be held on the 16th day of August, 1926. The petition alleged that the house was destroyed by fire on March 18, 1926, and proof of loss duly made. Court convened on the third Monday of August, being the 16th day of said month, and on the morning of the 18th of August, there being no answer filed by the appellant judgment by default was entered for the full amount sued for. On the afternoon of the 18th day of August, an answer consisting of general demurrer and general denial was filed by the appellant. On the 19th of August original motion for new trial was filed, and on the 2d day of September thereafter appellant filed his first amended motion for new trial, praying that the judgment by default be set aside. The amended motion for new trial, omitting the formal parts, alleges in substance as follows:

(1) That the judgment by default was taken during the forenoon of August 18th (the third day of the term), and defendant's answer was filed on the afternoon of the same day,

(2) That the plaintiffs' petition alleges that the defendant is a corporation, but does not allege that it was duly incorporated in accordance with the laws of Texas, or any other state, and does not allege that the defendant is conducting a fire insurance business in Texas, either lawfully or unlawfully, or was so doing at the time the policy was issued.

(3) That the defendant's business in and for the state of Texas is managed by its general agents at Houston, who received through the mails what purported to be a citation served upon Murfee at Lubbock. That in the citation Murfee is said to be the agent for the corporation. That no copy of the petition was attached to the citation. That said citation was received by the general agents on or about the 25th day of July, about five days after the date thereof. That it does not appear from the citation that Murfee is the local agent of the company in and for Lubbock county, nor is the defendant commanded to appear and make answer to the petition at any point or city which said citation names in the state of Texas, nor is there any fact or statement in the body of the citation declaring that the suit is pending in the district court of Lubbock county.

(4) That after the fire appellant's general agents were endeavoring to get a full report on the loss and the statement of the material facts relating thereto, but at the time of the issuance of the citation had not secured said report. That immediately upon receipt of the citation, said agents forwarded same to their attorney at Dallas, asking that answer be made thereto. That E. G. Senter, a member of the firm of Senter, Strong Young, employed by said general agents to give attention to the business appertaining thereto, was not in Dallas at the time his said firm received the citation, and did not return to his office until several days thereafter. That the citation was misplaced in the office of Senter's firm by a clerk therein, and was not brought to the attention of the said Senter until after default judgment was rendered therein. That Senter was still absent from his office on the return date mentioned in the citation, and that it was by accident discovered by a clerk in said office upon said date that said citation had been misplaced and not brought to the attention of the said Senter and had not been given attention. Thereupon a telegram was sent from said office to Bledsoe Crenshaw, *Page 680 attorneys of Lubbock, requesting them to file a formal answer, which was done by them.

(5) That defendant had a meritorious defense in that policy contains the following provision material to the risk and the contract:

"This entire policy shall be void if the insured has concealed or misrepresented in writing, or otherwise, any material fact or circumstances concerning this insurance, or the subject thereof, or if the interest of the insured in the property be not truly stated herein, or in case of any fraud or false swearing by the insured touching any matter relating to this insurance, or the subject thereof, whether before or after loss."

The motion further states, in substance: That the policy was issued to plaintiffs by W. E. Dumas, defendant's agent at Plains, Tex. That prior to March 8, 1926, and on the 15th of January, 1926, plaintiffs had allowed insurance to lapse on said premises. That the fire which resulted in the loss complained of in plaintiffs' petition occurred at 1 o'clock in the morning of March 18, 1926, just ten days after the issuance of the policy sued upon. That defendant is advised and avers upon credible information that the officers of Yoakum county, Tex., immediately after the fire, discovered facts and circumstances which indicated that the building described in the policy sued on was deliberately and willfully burned. That since the fire indictments had been returned by the grand jury of Yoakum county against two persons named in said indictments, charging them with having willfully burned said property. That the facts and circumstances discovered by said officers of Yoakum county, Tex., tend to show that said fire was caused or procured by some one acting in collusion with W. E. Earnest, husband of the plaintiff Mrs. W. E. Earnest, and that the plaintiff Mrs. W. E. Earnest is lawfully chargeable with responsibility therefor. That this defendant is without knowledge which would authorize it to make the charge that the plaintiffs are chargeable with the destruction of said property. That it relies upon information furnished to it by the officers of Yoakum county for the statement of facts herein made. That it is reported to defendant that there are facts and circumstances which show, or tend to show, that the plaintiffs, or one of them, are responsible for the destruction of said property. That a full, fair, and impartial investigation should be made of such reports. That defendant has not had time or an opportunity to make such investigation. That it does not desire to do an injustice to the plaintiffs, or either of them, but merely seeks an opportunity to ascertain the facts and present the same in court if there are facts and circumstances which tend to show that the plaintiffs, or either of them, are responsible for the destruction of said property.

(6) That defendant shows that if after a full and fair investigation of the facts it shall be disclosed that there is no reasonable ground for believing that plaintiffs, or either of them, are responsible for the destruction of said property, then it is the desire of this defendant to pay off and discharge the amount of the claim as asserted by the plaintiffs in their petition.

(7) Defendant shows that it is advised and believes and avers that no evidence was introduced in the trial of this cause to sustain either of the material allegations therein; that the only evidence which was offered was the policy sued upon; that no evidence was offered to show that the person served as agent was in fact the agent, or the local agent, of the company; that no evidence was offered to show that the St. Paul Fire Marine Insurance Company is a corporation or that it is duly incorporated, or that it was and is authorized to transact business in the state of Texas; that no evidence of any kind or character was offered at the time default judgment was taken herein except that the policy of insurance was produced and exhibited in court, and it was shown that the property had been burned.

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Bluebook (online)
293 S.W. 677, 1927 Tex. App. LEXIS 161, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-paul-fire-marine-ins-v-earnest-texapp-1927.