Williams v. General Insurors. Inc.

7 So. 2d 876, 193 Miss. 276, 1942 Miss. LEXIS 90
CourtMississippi Supreme Court
DecidedMay 11, 1942
DocketNo. 34888.
StatusPublished
Cited by4 cases

This text of 7 So. 2d 876 (Williams v. General Insurors. Inc.) is published on Counsel Stack Legal Research, covering Mississippi Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Williams v. General Insurors. Inc., 7 So. 2d 876, 193 Miss. 276, 1942 Miss. LEXIS 90 (Mich. 1942).

Opinions

*288 Griffith, J.,

delivered the opinion of the court on suggestion of error.

The case is here on the pleadings, and only that which is sufficient to disclose the determinative points will be stated. The Washington Fire and Marine Insurance Company is a foreign insurance corporation not admitted to do business in this state. The General Insurors, Inc., is a nonresident corporation engaged in the business of an insurance agency, and neither of said corporations has any agent in this state upon whom service of process may be had. John Robinson is an insurance agent resident in this state. The Caledonian Insurance Company is a foreign insurance company licensed to do business in this state, and with agents here upon whom process may be served.

During the period between September 1,1940', and August 15, 1941, the parties aforesaid had engaged in a plan of operation by and under which the agents ’ commissions and services rendered on insurance written by the Caledonian upon certain property in this state, which commissions amounted to $42,597.00, were to be divided and were in fact divided in a manner which the Insurance Commissioner contended, and now contends, was violative of the provisions of Chapter 194, Laws 1938.

When this contention was placed squarely before the Caledonian Company by the Insurance Commissioner, that company took such steps as resulted in the delivery of the sum of $34,321.23 to Harold Cox, a resident of this state, as escrow agent. This sum represented the $42,-597.06 less 20 percent thereof already theretofore paid to Robinson under the plan of operation which the Insurance Commissioner had challenged. Cox thereupon filed his bill of interpleader making as parties defendant thereto General Insurors, Inc., and John Robinson, and deposited, at the same time, the $34,-321.23 in the registry of the court. Robinson appeared and disclaimed any *289 interest in the fund, averring that under his contract with these parties he was entitled to only 20 percent of the agents’ commissions, which 20 percent had already been paid to him, and General Insurors, Inc., appeared setting up its claim to the entire amount of the deposited fund. Thus it appeared that there was no actual controversy between the parties to the original interpleader suit.

In this situation the Insurance Commissioner, by the Attorney General, filed his petition of intervention by which he sought to show that the real controversy was one between the parties and the state; and as to whether the aforementioned arrangements between the parties for a division of the agents’ commissions and services were violative of the cited chapter of the laws, the state by its proposed intervention sought to litigate these issues, although the state was not made a party to the original and pending suit. The complainant demurred to the petition of intervention, the demurrer was sustained, and on the appeal from that action, the decree was sustained by this court on the ground that the sole and exclusive remedy by which the Insurance Commissioner could act in the premises would be by a revocation of the license of the agent or company who had violated the statute. See 6 So. (2d) 922.

Upon a further and a prolonged reconsideration of the case upon the suggestion of error, we have concluded that the authority to revoke the license, as mentioned in Seo tion 3 of the cited chapter, is not an exclusive remedy, but is an additional or cumulative power or authority, which in nowise is in derogation of the powers and authority of the Insurance Commissioner or the Attorney General to deal with such a situation which these officers, one or the other, or both, possess or may invoke under the law aside from said Section 3. We do not elaborate upon the reasons and principles which have led us to our' present conclusion upon that point, but having announced' it, we *290 withdraw in its entirety the opinion heretofore delivered, and proceed to the question whether under our practice the petition of intervention was entertainable; and this question we answer in the negative, and upon procedural principles now to be stated.

Intervention by which a person not a party to the pending action or suit is permitted to become a party thereto on his own motion, supported by petition, without the invitation-or consent of the original parties, is a practice which was unknown to the common-law courts of law and equity, and this was expressly so declared in Hyman v. Cameron, 46 Miss. 725. And this rule prevails to this day in actions at law except as otherwise allowed by statute. City of Biloxi v. Gully, 187 Miss. 664, 672, 193 So. 786.

Under the influence of the general rule in equity that the court will not proceed when it appears that a necessary party has been omitted, courts of chancery in this state, and without statutory aid, later qualified the pronouncement in Hyman v. Cameron and admitted intervention by a third party when such a party by his petition was able to show that he had an immediate legal or equitable interest in the property in suit and that this interest was so involved therein as that the intervenor’s title to or right in the property, as property, would be jeopardized or beclouded by the decree which the court might make in the suit between the original parties.

The development and the present attitude of the practice in that regard is set forth in Griffith Miss. Chan. Pr., Secs. 410 and 411; and in addition to the cases therein cited, reference may be had to the latest case on the subject, Shuptrine v. Natalbany Lbr. Co., 189 Miss. 409, 413, 198 So. 24. It will be seen on an examination of the cases that they have gone no further in this state than to meet the situations which have been mentioned in the next foregoing paragraph herein, and that there must be involved in the original suit real or personal property in *291 or to which the intervenor has some immediate right or title in whole or in part, legal or equitable.

Note 12 on page 425 of the text above cited is as follows: ‘ ‘ The intervention in its nature has reference to a claim or interest in rem, for a stranger can have no interest in a legal sense in a suit in personam, unless the personal decree sought is such as to specifically compel the person with respect to property. In a suit in rem, however, persons not parties may have such a claim or interest in the res as in the very justice of the situation may entitle them to intervene.” When it is understood that the interest in rem mentioned in that note may include personal as well as real property, and that the specific personal compulsion has reference to property in which the intervenor has an immediate right or title legal or equitable in whole or in part, the note is hereby approved as a concise summation of the rule as it exists in this state; and without the aid of statute, we must decline to extend it further.

The question, then, which lies at the threshold is whether the proposed intervenor has any legal or equitable right or title to the res involved in the suit.

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Bluebook (online)
7 So. 2d 876, 193 Miss. 276, 1942 Miss. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/williams-v-general-insurors-inc-miss-1942.