Toledo Terminal Railroad v. Mauk

9 Ohio App. 438, 30 Ohio C.C. Dec. 535, 29 Ohio C.C. (n.s.) 257, 29 Ohio C.A. 257, 1918 Ohio App. LEXIS 165
CourtOhio Court of Appeals
DecidedJune 24, 1918
StatusPublished
Cited by1 cases

This text of 9 Ohio App. 438 (Toledo Terminal Railroad v. Mauk) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Toledo Terminal Railroad v. Mauk, 9 Ohio App. 438, 30 Ohio C.C. Dec. 535, 29 Ohio C.C. (n.s.) 257, 29 Ohio C.A. 257, 1918 Ohio App. LEXIS 165 (Ohio Ct. App. 1918).

Opinion

Richards, J.

Clinton A. Mauk was the owner of a large quantity of lumber, and the operator of a lumber yard, all situated in the northerly part of the city of Toledo, most of the lumber being in two large sheds owned by the Ann Arbor Railroad Company, and a portion being in another shed owned by Mr. Mauk. These sheds were located near various switching tracks of The Toledo Terminal Railroad Company and other switching tracks of the Ann Arbor Railroad Company. The property was destroyed by fire on the night of October 15, 1916, the fire resulting in nearly a total loss. The property owned by Mr. Mauk was insured in several insurance companies to the amount of $38,000, and this amount was paid by these companies to him. Thereupon Mr. Mauk and the nine insurance companies united as plaintiffs in an action against The Toledo Terminal Railroad Company to recover the value of the property destroyed by fire, the insurance companies •claiming to be subrogated to the rights of Mr. [440]*440Mauk .to the extent of the sums paid by them severally. The petition was met by a motion to separately state and number the causes of action and to make more certain and definite, which motion was overruled by the co.ur-t. Thereupon the defendant filed a demurrer to the petition on the grounds of a misjoinder of parties plaintiff, and for the reason that several causes of action were improperly joined, and for want of facts. This demurrer was overruled and an answer filed by the defendant. A trial of the case resulted in a. verdict and judgment being rendered in favor of the plaintiffs in the amount of $70,000. We are asked to reverse this judgment for various reasons, but chiefly because it is claimed that the court erred in overruling the motion and demurrer, because the judgment is not sustained by sufficient evidence, and because the court erred in the admission and exclusion of evidence and in the charge to the. jury.

We have no difficulty in reaching the conclusion that the petition sets forth but one cause of a'ction and that the same is set out with sufficient certainty. There was but one fire pleaded, and that -is averred to have been caused by sparks emitted from an engine of the railroad company. The cause of action was based on a single wrongful act. The owner of the property was, of course, the primary sufferer by reason of -the fire, and no doubt can exist but that the insurance companies upon making payment under, the policies issued by them became subrogated to the rights of the assured to the extent of the payments so made. The averments of the petition show that the loss [441]*441largely exceeded the amount of the insurance, and' it is therefore clear that not only the owner but the insurance companies were interested in maintaining a suit against the defendant.

While there are some differences in detail between this case an'd the case -of The L. E. & W. Rd. Co. v. Falk and The Phoenix Insurance Company, 62 Ohio St., 297, and while there has been some change in the statute since the announcement of that decision, yet the principles therein set forth indicate very clearly the rules «which should govern in the case at bar. It is claimed that under the statute, as it now reads, Section 8970, General Code, the railroad company is liable to the owner of the property absolutely, but that the liability to the insurance company arises only on averments and proof of negligence on the part of thé railroad company. It is true that the statute cited provides that- the company shall be liable for all loss or damage by fires originating on adjacent lands, caused in whole or in part by sparks from an engine passing over such railroad, and the exercise by such company, or receiver of' such company, of due care in equipping and operating such engine shall not exempt sufch company, or receiver of such company, from liability. This statute does create as against the railroad company an absolute liability, on evidence showing that the fire originated from sparks from an engine passing over its railroad; but when an insurance company, having a policy upon property destroyed by fire from sparks coming from an engine passing over a railroad adjoining the property, has made payment under its policy, it is by general principles of [442]*442equity subrogated to the rights of the assured and that subrogation is to all the rights of the assured as against the railroad company to the extent of the amount paid by the insurance company. It would seem clear, therefore, that the statute inures to the benefit of the insurance company so making-payment as well as to the assured.

, Manifestly all thq rights given by the statute could be secured by the owner bringing- an action against the railroad company, which is claimed to have caused the fire, in which action, whether he had received the amount of the insurance on the property or not, he would be entitled, if the proof showed liability, to recover the full value of the property destroyed, and this would raise an equity in favor of the insurance companies against the assured in the fund received by him from the railroad company. Furthermore, a person whose property is insured, who suffers loss by reason of a fire, has a right to assign his cause of action, and the assignee would be entitled to all -the benefits conferred by the section of the General Code above cited; and, clearly, whatever rights could be acquired and enforced indirectly may be enforced directly in an action by the assured and the companies which have made payment under their policies. In truth, the action at bar is an action by the owner of the property to recover the full amount of the loss from the railroad company; and the fact that the insurance companies are united with him as coplaintiffs can in no manner prejudice the rights of the railroad company, but enables the court to adjust the equities of the plaintiffs among themselves.

[443]*443The rule is stated in 1 Clement on Fire Insurance, 369, as follows:

“When a statute or code of practice authorizes suit in name of real party in interest, and a number of insurance companies are subrogated as equitable assignees to rights of insured as against a railroad company, they may properly be joined as plaintiffs in an action against the latter to recover the loss or damage. If the insured has any interest or his whole loss was not paid by the insurance companies, he should be also joined as a party to the action, either as a plaintiff by his consent or as defendant if he refuses.”

We hold, in view of reason and authority, that the owner and the insurance companies which have made payment may unite in an action against the railroad company, where the total loss suffered exceeds the amount of the insurance on the property. It follows that the court committed no error in overruling the motion directed to the petition, nor in overruling the demurrer thereto.

A lárge mass of evidence was taken in this case bearing upon the manner in which the fire originated which caused the destruction of the property. The evidence shows that the fire originated in or near what is known as shed No. 1, one end of which was located within twenty-five or thirty feet of the tracks of the Terminal Railroad Company, and that the fire spread from this shed to the other two, resulting in the destruction of all of them. These sheds were constructed of lumber, and shed No. 1 had an open unboarded space about nine feet from the ground extending the entire distance around it.

[444]

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9 Ohio App. 438, 30 Ohio C.C. Dec. 535, 29 Ohio C.C. (n.s.) 257, 29 Ohio C.A. 257, 1918 Ohio App. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/toledo-terminal-railroad-v-mauk-ohioctapp-1918.