American Fire Ins. Co. v. First Nat. Bank

• Decision Date: 06 March 1895
• Citation: American Fire Ins. Co. v. First Nat. Bank, 30 S.W. 384 (Tex. App. 1895)
• Parties: AMERICAN FIRE INS. CO. v. FIRST NAT. BANK et al.
• Court: Texas Court of Appeals

30 S.W. 384

AMERICAN FIRE INS. CO. v. FIRST NAT. BANK et al.

Court of Civil Appeals of Texas.

March 6, 1895.

Appeal from Hunt county court; W. H. Ragsdale, Judge.

Action by the First National Bank and others against the American Fire Insurance Company. From a judgment for plaintiffs, defendant appeals. Reversed.

Morgan & Thompson, for appellant.

FINLEY, J.

This cause is not briefed by appellees, and, under the rules, we will accept and treat the statements made in appellant's brief as correct. This suit was filed February 11, 1893, by appellees against appellant on a policy of fire insurance in the sum of $800, of which $725 was on a stock of goods, located in Greenville, Tex., and $75 was on store furniture and fixtures. The policy was issued originally to Staggs & Witt, and by them, with the consent of the company, transferred to Staggs, and by him, after the fire, transferred to appellees. Appellant by first amended answer set up general and special exceptions, general denial, the three-fourths value and iron-safe clauses, and fraud and false swearing on the part of the assured. Trial was had before a jury, resulting in a verdict and judgment for the plaintiffs for the sum of $600.

The policy sued on being a printed form, on which the agent added such references and descriptions as were necessary to form the contract of insurance, contained in the handwriting of the agent, following the description of the property on which specific insurance was placed, the expression that the policy of insurance issued in consideration of the stipulations therein contained was issued "subject to the three-quarters value and iron-safe clauses attached to and made a part of the policy." This three-fourths value and iron-safe clause was on a printed slip, and was attached to the face of the policy, by being firmly pasted thereon with mucilage, on the margin of the policy opposite the written clauses, about midway of the same. This slip containing the three-fourths value and iron-safe clauses read as follows: Three-fourths value clause: "It is a condition of this policy that, in the event of loss or damage by fire of the property insured, this company shall not be liable for an amount greater than three-fourths of the cash market value of the same, not exceeding the amount of the policy at the time immediately preceding such loss or damage." Iron-safe clause: "The assured under this policy hereby covenants and agrees to keep a set of books, showing a record of...