Am. Liberty Life Ins. Co. v. Baird, Case Number: 24646

• Court: Supreme Court of Oklahoma
• Citation: 1936 OK 178,176 Okla. 132,57 P.2d 829
• Docket Number: Case Number: 24646
• Parties: AMERICAN LIBERTY LIFE INS. CO. et al. v. BAIRD.
• Decision Date: 25 February 1936

1936 OK 178
57 P.2d 829
176 Okla. 132

AMERICAN LIBERTY LIFE INS. CO. et al.
v.
BAIRD.

Case Number: 24646

Supreme Court of Oklahoma

Decided: February 25, 1936

Syllabus

¶0 SUBROGATION - Rights of Original Debtor Paying Indebtedness Assumed by Another in Contract.

Where one party to a contract, as a part of the agreement, and for a consideration, assumes an indebtedness owing by the other party to a third party, the one assuming the indebtedness becomes the principal and the former debtor a surety, and in default of the payment of the indebtedness by the principal, and the subsequent payment thereof by the surety, the surety thereby becomes subrogated to the creditor's rights as against the principal.

Appeal from Court of Common Pleas, Tulsa County; Samuel H. Crossland, Judge.
Action by Wilson D. Baird against American Liberty Life insurance Company et al. Judgment for plaintiff, and the defendant American Liberty Life Insurance Company appeals. Affirmed.

E.M. Connor, for plaintiffs in error.

Monnet & Savage, for defendant in error.

PER CURIAM.

¶1 This case comes before this court on appeal from the court of common pleas of Tulsa county, Okla., wherein the defendant in error, Wilson D. Baird, recovered a judgment against the plaintiff in error, the American Liberty Life Insurance Company, a corporation. The parties will be referred to as they appeared in the lower court.

¶2 The facts material for a proper determination of this appeal are these: In June, 1931, the plaintiff, Wilson D. Baird, purchased an automobile from the Simpson Auto Company of Oklahoma City, paying therefor $675 at the time of the purchase of said car, and the balance thereof, in the amount of $919.19, to be paid in 12 monthly installments of $76.66 per month. On July 6, 1931, O.A. Hughes, an agent of the defendant company, solicited the plaintiff at his office, and as a result of such solicitation, the plaintiff signed an application for an insurance policy with the defendant company under the terms of which the defendant company agreed to pay to the Simpson Auto Company, from whom the plaintiff purchased said automobile, the amount of such installment payments as might accrue thereon during any total disability that plaintiff might sustain as a result of illness or accidental cause, and on the 8th day of July, 1931, plaintiff issued his check to said O.A. Hughes covering premium payment on said policy for a period of one year from date, and simultaneous therewith said agent delivered to the plaintiff said insurance policy. Under the terms of said policy the insurance comany agreed that in the event plaintiff should become totally disabled within a period of 12 months from date of said policy, either through illness or accidental injury, said company would pay to said Simpson Auto Company said monthly installments of $76.66 each during the continuance of said period of disability.

¶3 On August 15, 1931, while said policy was in force and effect, plaintiff became totally disabled and remained so from said date until October 15, 1931, and was thereafter totally disabled from November 6, 1931, to November 17, 1931.

¶4 Immediately upon becoming so disabled, plaintiff notified the J. Herbert Moore Agency of said insurance company, as required by said policy, and made a demand on said insurance company to make said payments of $76.66 per month to the Simpson Auto Company, which demand was refused and any and all liability under said policy denied by said insurance company.

¶5 Thereafter the plaintiff instituted its action against said insurance company for the sum of $191.65,...