State Ex Rel. United States Fire Insurance v. Terte

176 S.W.2d 25, 351 Mo. 1089, 1943 Mo. LEXIS 540
CourtSupreme Court of Missouri
DecidedNovember 1, 1943
DocketNo. 38424.
StatusPublished
Cited by44 cases

This text of 176 S.W.2d 25 (State Ex Rel. United States Fire Insurance v. Terte) 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. United States Fire Insurance v. Terte, 176 S.W.2d 25, 351 Mo. 1089, 1943 Mo. LEXIS 540 (Mo. 1943).

Opinion

ELLISON, J.

Original proceeding in mandamus to compel the respondent circuit judge to take jurisdiction of a declaratory judgment suit. The suit was filed by the relator Fire Insurance Company in Jackson County on April 14, 1941, against Eva, F. Hunt. It sought a declaration of the rights of the parties under a $1000 fire insurance policy theretofore issued by relator to said defendant, covering a building on two lots in Breckenridge, Missouri, which had recently been totally destroyed by fire. About two weeks after the institution of the declaratory judgment suit the defendant Eva Hunt *1092 brought a separate action against relator to recover on the same policy in the circuit court of Caldwell County where the property was located. Thereafter, in the Jackson County circuit court she' demurred, filed answer, and then moved to dismiss relator’s declaratory judgment suit, in each instance challenging the court’s jurisdiction thereover. The demurrer and motion were overruled, whereupon she filed a motion to stay proceedings in that suit until her action in Caldwell County on the insurance policy had been disposed of. That motion was sustained by the respondent judge.

The relator Insurance Company then brought this mandamus proceeding, contending respondent’s sustention of defendant Hunt’s motion to stay proceedings in the declaratory judgment suit was tantamount to a refusal to take jurisdiction thereof. The respondent judge makes return denying that he had refused to take jurisdiction of the suit and alleging to the contrary that he did accept jurisdiction; but that he sustained said motion to stay proceedings therein in the exercise of his judicial discretion, because of the pendency of defendant Hunt’s action on the policy in Caldwell county, and because he believed relator’s suit for a declaratory judgment in his court was not brought in good faith, but for the purpose of preventing defendant Hunt from having her action on the policy in Caldwell county tried to a jury.

The foregoing is an outline of the ultimate facts, but a few others should be stated for a better understanding of the case. It is conceded that the same parties, property and insurance policy are involved in both eases; and that the ultimate question in both is whether the relator is liable to defendant Hunt on the policy. There was a clause in the policy reciting that it should be void if the interest of the insured in the land were other than unconditional and sole ownership in fee simple, or if any change, except by her death, should take place in her interest, title or possession. The relator’s petition in the declaratory judgment suit alleged the foregoing, and [27] that some two weeks or more before the fire defendant Hunt had entered into a written contract for the sale of the property, received a down payment on the purchase price, and placed the vendee in possession. For that reason relator disclaimed liability, averring defendant Hunt had no insurable interest in the property because of the aforesaid policy provision; but that she claimed relator was liable for the full amount, in consequence of which an actual controversy existed between them. Then followed the prayer for a declaratory adjudication of “the rights, liability and responsibility of the parties” under the policy; and for general relief. There .was no prayer for cancellation of the policy, or for affirmative, injunctive or other coercive relief.

Defendant Hunt by her answer denied having made the sale contract; affirmed the.policy was binding; charged vexatious delay, *1093 asserted.no controversy existed.between the parties within, the meaning of the Declaratory Judgment .Act, over which respondent could exercise jurisdiction to grant declaratory relief; claimed the right to a jury trial (evidently meaning in her Caldwell county action); and alleged the pendency of that action where relator could make its defense. The prayer of the answer was that relator be denied declaratory relief, and that she be discharged with her costs. She asked no money judgment or executory process.

Relator’s legal theory is as follows. The circuit courts'of Jackson county and Caldwell county were of coordinate jurisdiction. Relator’s suit for a declaratory judgment was instituted 'first in the former court and service of process obtained. Therefore when the “respondent judge of that court sustained defendant Hunt’s motion to stay proceedings pending the outcome of her action on the policy later filed in the Caldwell county circuit court, he was in effect refusing to take jurisdiction of relator’s suit for a declaratory judgment— this because the court which first acquires jurisdiction of the parties has the right of way and should retain complete and exclusive jurisdiction until the issues are fully determined. (Relator filed an answer in defendant Hunt’s Caldwell county action, setting out the same legal contentions and praying that proceedings therein be stayed pending the determination of the declaratory judgment suit in Jackson county.)

It is evident from respondent’s rulings that he was not refusing to take jurisdiction of the declaratory judgment suit, or at least did not so intend. Three times defendant Hunt attempted unsuccessfully to challenge his right to try the cause. First, she demurred on the ground that there was another action pending between the same parties for the same cause, and respondent overruled the demurrer. Next her answer reiterated that respondent was without jurisdiction to grant relief under the Declaratory Judgment Act, because of her action pending in Caldwell county where relator’s defenses could be asserted. And thirdly, she filed a motion to dismiss the declaratory judgment suit on the ground that under the facts respondent had no jurisdiction of that form of proceeding, and that by the entertainment thereof he would be denying her the right of jury trial in the Caldwell county action. Respondent overruled that motion, but suggested that if she would file a motion to stay proceedings the court would sustain it, which was done.

In view of this case history it seems relator is in error in charging that the respondent judge refused to take jurisdiction of the case. A better way of expressing its contention would be to say that he refused to exercise jurisdiction. 1 Further, to narrow the issues it *1094 should be stated that while defendant Hunt in her answer in the declaratory judgment suit alleged no controversy existed between her and the relator'Insurance Company, yet the respondent judge makes no such contention here. His return by necessary implication admits the contrary. But the controversy was one of fact, not of law. It was not disputed that if defendant Hunt before the fire did sell the property, accept part of the purchase price and deliver possession, the policy was thereby voided under the provision thereof heretofore summarized. On the merits there were only two questions: (1) whether she did make that sale; (2) and whether the relator was guilty of vexatious delay in refusing to pay the loss. The sole remaining question was not one of substantive rights but of procedural law— whether defendant Hunt should be required to try the foregoing issues of fact in [28] the declaratory .judgment suit.

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Bluebook (online)
176 S.W.2d 25, 351 Mo. 1089, 1943 Mo. LEXIS 540, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-united-states-fire-insurance-v-terte-mo-1943.