Standard Grocery Co. v. National Fire Ins. Co.

• Citation: 32 S.W.2d 1023,161 Tenn. 640
• Parties: STANDARD GROCERY CO. v. NATIONAL FIRE INS. CO.
• Decision Date: 28 November 1930
• Court: Supreme Court of Tennessee

32 S.W.2d 1023

161 Tenn. 640

STANDARD GROCERY CO. v. NATIONAL FIRE INS. CO.

Supreme Court of Tennessee.

November 28, 1930

Certiorari to Court of Appeals, on Appeal from Chancery Court, Carter County; S.E. Miller, Chancellor.

Suit by the Standard Grocery Company against the National Fire Insurance Company. Decree for complainant, and defendant brings certiorari to review decision of Court of Appeals affirming decree.

Reversed and bill dismissed.

Miller Seiler & Hunter, of Elizabethton, for complainant.

Sizer Chambliss & Sizer, of Chattanooga, for defendant.

MCKINNEY J.

The chancellor entered a decree on a fire policy in favor of complainant for $1,062.50. His decree was affirmed by the Court of Appeals. The defenses are:

1. That the policy did not insure complainant.

2. That the interest of the insured was not truly stated in the policy.

3. Change of ownership prior to the fire.

The policy was issued in favor of "Carter Grocery Co. G. C. Long and A. J. Stanberry, Props."

The facts are that the Standard Grocery Company is a corporation engaged in the wholesale grocery business at Elizabethton. It decided to open a branch house in the same city, using the trade-name of Carter Grocery Company, and placed G. C. Long and A. J. Stanberry in charge. The capital stock in the Standard Grocery Company was owned by Long, Stanberry and two Birchfields. The agent of defendant, Jenkins, called on Long to sell him some life insurance. After discussing that matter they discussed fire insurance, and Long agreed to take $2,000 fire insurance on the stock with defendant. Long testified as follows:

"Q. Did you tell Mr. Jenkins to put the word 'Props.' after your name in this policy or did he do that of his own accord? A. I think he asked me if we were the owners of the Carter Grocery Company and we told him that we were, and I think he just added that of his own accord. I don't know if I suggested it."

So that it was the Carter Grocery Company, owned by Long and Stanberry, that defendant was insuring, when as a matter of fact this business was owned by Standard Grocery Company, a corporation. The words "proprietor" and "owner" mean the same thing and are synonymous. The policy provides as follows:

"This entire policy shall be void if the interest of the insured in the property be not truly stated therein."

Also:

"This entire policy, unless otherwise provided by agreement indorsed hereon or added hereto, shall be void if the interest of the assured be other than unconditional and sole ownership."

The company was insuring goods which Long and Stanberry claimed to be the owners of, but which they only had an interest in.

Where a party represents himself to be the owner of certain property, and he only owns a half interest, the policy is void, even though the misrepresentation be the result of ignorance. Catron v. Tennessee Insurance Co., 25 Tenn. (6 Humph.) 176.

Even though nothing had been said about title, if complainant had accepted the policy, in which Long and Stanberry were designated as owners of the property insured, it could not recover. Foster v. Ill. Trav. H. Ins. Co., 156 Tenn. 436, 300 S.W. 7.

We are unable to accept the view entertained by the other courts that the mistake in naming the insured was due to the negligence of Jenkins, which negligence will be imputed to the company. Long told Jenkins that he and Stanberry were the...