Aetna Life Ins. Co. of Hartford, Conn. v. Haworth, 2670.

Decision Date22 August 1935
Docket NumberNo. 2670.,2670.
PartiesÆTNA LIFE INS. CO. OF HARTFORD, CONN., v. HAWORTH et al.
CourtU.S. District Court — Western District of Missouri

Morrison, Nugent, Wylder & Berger, of Kansas City, Mo., for plaintiff.

Turpin, Behrendt & Searing, of Kansas City, Mo., for defendants.

OTIS, District Judge.

On June 1, 1911, the Ætna Life Insurance Company, plaintiff here, issued its policy of life insurance in the principal amount of $10,000 to Edwin P. Haworth, one of the defendants. The policy contained a provision obligating the company, subject to certain conditions unnecessary to be stated, annually to pay the insured one-twentieth of the principal amount of the policy if he should become wholly and permanently disabled, and relieving the insured from payment of premiums after he had become so disabled. The insured did not pay the premium due June 1, 1934, and has not paid that premium, asserting that on and before that date he was wholly and permanently disabled and so relieved from the payment of that as well as of subsequent premiums.

The defendant Cora M. Haworth is the wife of the defendant Edwin P. Haworth and is the beneficiary in the policy.

The insurance company denies that the insured was wholly and permanently disabled as he asserts and therefore contends that the policy lapsed for failure to pay the premium due June 1, 1934, and that the maximum amount which will be due to the beneficiary on the death of the insured, under an extended term insurance provision of the policy, certain indebtedness for money borrowed on the policy having been canceled, will be $45.

Such are the essential allegations of plaintiff's petition. Based upon them, plaintiff prays a declaratory judgment adjudicating the right of the parties under the policy. Defendants have moved to dismiss the petition. Whether that motion shall be sustained is the question now for decision.

The plaintiff desires to have judicially determined now the question whether the insured was wholly and permanently disabled on June 1, 1934. If that question can be decided now and is decided adversely to the insured's contention, the liability of the plaintiff definitely and finally will be limited to the ultimate payment of $45. An alternative is that at the death of the insured (and that may be 20 years hence) the beneficiary will sue on the policy. If she then is able to prove that on and from June 1, 1934, the insured was wholly and permanently disabled, she will be entitled to judgment against the plaintiff for the full amount of the policy less indebtedness. The plaintiff fears that at the possibly remote date such a suit may be brought the witnesses and evidence now to be had no longer will be available.

In this situation plaintiff seeks to make use of the so-called Declaratory Judgment Act approved June 14, 1934 (Jud. Code § 274d, 28 USCA § 400). That act provides:

"(1) In cases of actual controversy the courts of the United States shall have power upon petition, declaration, complaint, or other appropriate pleadings to declare rights and other legal relations of any interested party petitioning for such declaration, whether or not further relief is or could be prayed, and such declaration shall have the force and effect of a final judgment or decree and be reviewable as such.

"(2) Further relief based on a declaratory judgment or decree may be granted whenever necessary or proper. The application shall be by petition to a court having jurisdiction to grant the relief. If the application be deemed sufficient, the court shall, on reasonable notice, require any adverse party, whose rights have been adjudicated by the declaration, to show cause why further relief should not be granted forthwith.

"(3) When a declaration of right or the granting of further relief based thereon shall involve the determination of issues of fact triable by a jury, such issues may be submitted to a jury in the form of interrogatories, with proper instructions by the court, whether a general verdict be required or not."

In support of the motion to dismiss, learned counsel for defendants maintain that the Declaratory Judgment Act is unconstitutional. His argument in this behalf is that under the Constitution (article 3, § 2) the judicial power of the national courts extends only to "cases" and "controversies." Congress cannot extend that power beyond the scope limited by the Constitution, and hence cannot...

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6 cases
  • Travelers Ins. Co. v. Young
    • United States
    • U.S. District Court — District of New Jersey
    • 6 March 1937
    ... ... Aetna Life Insurance Company of Hartford, Connecticut, v. Edwin P. Haworth et al. (D.C.) 11 F.Supp. 1016. In that case in ... ...
  • Aetna Life Ins Co of Hartford, Conn v. Haworth
    • United States
    • U.S. Supreme Court
    • 1 March 1937
    ...that it did not set forth a 'controversy' in the constitutional sense and hence did not come within the legitimate scope of the statute. 11 F.Supp. 1016. The decree of dismissal was affirmed by the Circuit Court of Appeals. 84 F.(2d) 695. We granted certiorari. November 16, 1936. 299 U.S. 5......
  • Aetna Life Ins. Co. of Hartford, Conn. v. Haworth
    • United States
    • U.S. Court of Appeals — Eighth Circuit
    • 27 July 1936
    ...referred to in the petition null and void. A motion to dismiss was sustained and the appeal is from the order of dismissal. (D.C.) 11 F.Supp. 1016. The motion to dismiss is in the nature of a demurrer to the petition, challenging the sufficiency of the statement of facts to constitute a cau......
  • Government Employees Ins. Co. v. Dizol, 95-17393
    • United States
    • U.S. Court of Appeals — Ninth Circuit
    • 28 February 1997
    ...action, it did not examine the question whether declaratory relief was available under Missouri law. Aetna Life Ins. Co. of Hartford v. Haworth, 11 F.Supp. 1016, 1017-18 (W.D.Mo.1935).Our research has disclosed that Missouri adopted a statute permitting an action for declaratory relief on J......
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