Automobile Underwriters v. Smith

• Decision Date: 22 March 1956
• Docket Number: No. 18683,18683
• Citation: 126 Ind.App. 332,133 N.E.2d 72
• Parties: AUTOMOBILE UNDERWRITERS, Incorporated, Appellant, v. Amanda SMITH, Appellee.
• Court: Indiana Appellate Court

Page 72

133 N.E.2d 72

126 Ind.App. 332

AUTOMOBILE UNDERWRITERS, Incorporated, Appellant, v. Amanda SMITH, Appellee.

No. 18683.

Appellate Court of Indiana, In Banc.

March 22, 1956.

Fenton, Steers, Beasley & Klee, Indianapolis, for appellant.

Clair McTurnan, Indianapolis, Elbert C. Cotton, Elwood, for appellee.

KENDALL, Judge.

On July 23, 1945, appellee was riding in a motor vehicle operated by her husband, driving easterly on a county highway known as Normandy Pike, a county highway near Tipton, Indiana, which highway intersected with another county road designated as Mary Hamm Road.

A truck owned by Fear Campbell Poultry Company, then being operated by one of its employees, was proceeding southerly on the Mary Hamm Road approaching the intersection with Normandy Pike. The two cars collided at the intersection wherein appellee alleged to have sustained personal injuries. The Fear Campbell Poultry Company was insured with the State Automobile Insurance Association for whom the appellant herein is the attorney in fact. The Association had a policy which was in full force and effect on date of accident.

On September 26, 1945, an adjuster for the insurance company called at appellee's home and settled with the appellee and her husband, Lawrence E. Smith, for their respective damages, both personal and property. The insurance company executed and delivered its draft in the sum of $400 to the appellee and her husband in full settlement therefor, which draft was not cashed until October 19, 1945.

Almost six years after the occurrence of the accident, appellee filed her action for damages resulting in this appeal by reason of alleged fraud and deceit made by the insurance adjuster in securing the release executed by appellee and her husband for $400. The complaint alleged that the appellant company, by their agent, was intent upon depriving the appellee of a valid and just claim and made representation of fact and knowledge which the defendant at that time knew to be false and untrue in that the appellant had experience in matters such as this; that the agent informed appellee that her recovery was in the process of being complete; that appellant was skilled in the law and prepared for plaintiff's own good to render her legal advice and that under a similar situation any lawyer would advise her the same as he would; that she did not need a lawyer; that the appellee would not be entitled to compensation for her injuries because appellee had an accident insurance policy covering doctor bills, etc.; that appellee herself was not entitled to anything from appellant or the said Fear Campbell Company by reason of said collision; that appellee could safely rely upon such statements.

Trial was had by jury resulting in a verdict favoring appellee in the sum of $5,000. Motion for new trial filed contained fifty-four specifications of alleged error which may be classified as, error of court in overruling appellant's motion to withdraw certain charges and allegations from consideration of the jury; error of court in overruling appellant's motion for directed verdict at the conclusion of the evidence; excessive damages; that the verdict was not sustained by sufficient evidence and was contrary to law; error of court in sustaining appellee's motion to recall appellee as a witness in her own behalf; error in admission of evidence, error in giving appellee's tendered instructions one to twenty, inclusive; error in refusing to give sixteen instructions tendered by appellant.

The assignment of errors are, error of court in overruling appellant's demurrer to appellee's complaint and error in overruling appellant's motion for new trial.

The release which appellee contends was obtained by fraudulent means of the adjuster was never introduced into evidence at the trial. In view of the nature of appellee's complaint that a release was obtained by fraudulent means and the case was tried upon such theory, our attention is directed to appellee's tendered instruction number three, which was given by the court and is as follows:

'In determining whether a release was executed under mutual mistake justifying rescission, I instruct you that all of the circumstances relating to the signing of the release and the sum paid for the release are required to be taken into consideration.'

To the giving of said instruction, the appellant offered the following objection:

'Defendant objects to this instruction tendered by the plaintiff and indicated that it will be given by the Court for the reason that said instruction is objectionable for the reason that it goes outside the issues of plaintiff's complaint. Plaintiff's complaint is founded upon intent of the defendant to defraud and deprive the plaintiff of her cause of action, that he knowingly and intentionally misrepresented to plaintiff...