State Ex Rel. Abeille Fire Insurance v. Sevier

73 S.W.2d 361, 335 Mo. 269, 1934 Mo. LEXIS 417
CourtSupreme Court of Missouri
DecidedJune 5, 1934
StatusPublished
Cited by37 cases

This text of 73 S.W.2d 361 (State Ex Rel. Abeille Fire Insurance v. Sevier) is published on Counsel Stack Legal Research, covering Supreme Court of Missouri primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
State Ex Rel. Abeille Fire Insurance v. Sevier, 73 S.W.2d 361, 335 Mo. 269, 1934 Mo. LEXIS 417 (Mo. 1934).

Opinions

*277 FRANK, C. J.

— Prohibition: One hundred and forty stock fire insurance companies, relators herein, seek to prohibit respondent judge from enforcing a judgment for restitution rendered by him on May 26, 1933, under a motion filed by the Superintendent of Insurance asking restitution of certain excess fire insurance premiums alleged to have been collected by relators pending actions brought by them to review and set aside a rate reduction order made in October, 1922, by Ben C. Hyde, then Superintendent of Insurance, reducing fire, windstorm and hail insurance rates in Missouri ten per cent. Our provisional rule issued, to which respondent made return and relators moved for judgment on the pleadings.

The facts necessary to a determination of the questions raised may be summarized as follows:

On January 5, 1922, Ben C. Hyde, then Superintendent of Insurance, pursuant to statutory authority, ordered that fire, windstorm and hail insurance rates in Missouri be reduced fifteen per cent. The stock insurance companies affected by such order, brought suit in the Circuit. Court of Cole County, seeking to enjoin the enforcement of said reduction order. .While this action was pending the plaintiff companies and the Superintendent of Insurance stipulated and agreed that said injunction suit should be dismissed, the reduction order withdrawn, that not earlier than March 15, 1922, the Superintendent of Insurance should call a hearing to investigate the necessity for a reduction of insurance rates, and if on such investigation, he again ordered a reduction in rates, and the insurance companies were dissatisfied with such reduction, they would proceed to secure a review of such reduction order in the Circuit Court of Cole County. The stipulation, among other things further provided :

“That no injunction suit shall be applied for in said matter restraining the enforcement of said order, but pending such review and until the final determination of said cause in whatever court it may be finally lodged, the rates in force prior to the making of such order shall be collected by such insurance companies, and such insurance companies shall give bond conditioned and in such amount as the court may direct, to refund to the assured any excess of premiums collected by them if such order of the Superintendent *278 of tbe Insurance Department be finally sustained by decree or judgment of a court of last resort. That in such matter the question of the constitutionality of Sections 6283 and 6284, Revised Statutes of Missouri, 1919, shall not be raised, nor shall the legality of the hearing above provided for be questioned.”

Thereafter on October 9, 1922, the Superintendent of Insurance ordered that fire, windstorm and hail insurance rates in Missouri stand reduced ten per cent effective November 15, 1922. On November 10, 1922, the insurance companies, relators herein, proceeded by suit in the Circuit Court of Cole County, seeking a review of said reduction order. On the same day said circuit court made an order authorizing said companies, pending the review, to collect the rates of premiums in force prior to October, 9, 1922, upon giving a bond in the amount of $500,000 "with terms and security to be approved by the court.. On the same day said insurance companies filed a bond as required by said order. In 1923 they filed an additional bond in the same amount. No further bonds were required or given. The suit to review the ten' per cent reduction order went to judgment in the circuit court on December 22, 1924. The judgment of the circuit court set aside the ten per cent reduction order and the Superintendent of Insurance appealed to this court. On June 23, 1926, this court reversed the judgment of the circuit court and at that time entered judgment in said cause, a copy of which will appear later. '

Thereafter the insurance companies applied for and obtained a writ of certiorari to the Supreme Court of the United States. Later, on January 3, 1928, that court dismissed the writ of certiorari. [Aetna Insurance Company v. Hyde, Superintendent, 275 U. S. 440.] Afterwards on February 14, 1928, the insurance companies filed separate actions in the United States District Court at Kansas City and obtained a temporary injunction in each case enjoining the Superintendent of Insurance and the Attorney-General from enforcing such reduction order. After an unsuccessful hearing of these injunction suits in the United States. District Court (Aetna Insurance Company v. Hyde, 34 Fed. (2d) 185), the companies appealed to the United States. Supreme Court where the judgment of the lower court was affirmed. [National Fire Insurance Company v. Thompson, 281 U. S. 331.] This judgment marked the end of the litigation over the reasonableness of the ten per cent reduction order.

On June 16, 1930, Joseph B. Thompson, successor to Ben C. Hyde, insurance commissioner, filed in this court a petition in the ease of Aetna Insurance Company et al. v. Hyde, seeking to compel said insurance companies to restore the ten .per cent excess premiums collected by them pending the litigation. This court on January 9, 1931, refused to take jurisdiction for the reasons stated in an opin *279 ion banded down at tbat time. [Aetna Insurance Company et al. v. Hyde, 327 Mo. 115, 34 S. W. (2d) 85.]

Thereafter on February 18, 1931, said Thompson filed in the Circuit Court of Cole County in said ease of Aetna Insurance Company et al. v. Hyde, a motion for restitution, being the motion upon which respondent based the orders and decrees and exercised the jurisdiction of which relators complain in the present prohibition proceedings.

On February 21, 1931, the insurance companies were given leave to plead to said motion within ten days. On February 26, 1931, relators filed petition and bond for removal of said motion to the United States District Court. After denial of said petition for removal, the record was certified to the United States District Court where on April 31, 1933, the cause was remanded to the Circuit Court of Cole County, where the motion was set for hearing on May 26, 1933. Relators filed what they styled, “return and answer to said motion.” On the date last aforesaid the cause was heard by the circuit court and judgment of restitution was rendered against relators. Relators seek by this prohibition proceedings to prohibit the circuit court from enforcing said judgment for restitution on the ground that said court was without jurisdiction to render the judgment.

It has been finally adjudicated that relators owe and stand indebted to its policyholders for the ten per cent excess in premiums collected from them after the effective date of the ten per cent rate reduction order, which was November 15, 1922. [Aetna Insurance Company v. Hyde, 315 Mo. 113, 285 S. W. 65; Aetna Insurance Company v. Hyde, 34 Fed. (2d) 185; National Fire Insurance Company v. Thompson, 281 U. S. 331.]

In relators’ suit to review the ten per cent rate reduction order, the Circuit Court of Cole County set such order aside.

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Bluebook (online)
73 S.W.2d 361, 335 Mo. 269, 1934 Mo. LEXIS 417, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-abeille-fire-insurance-v-sevier-mo-1934.