Bayless v. Mercantile Town Mut. Ins. Co.

• Decision Date: 04 April 1904
• Citation: 106 Mo. App. 684,80 S.W. 289
• Court: Missouri Court of Appeals
• Parties: BAYLESS v. MERCANTILE TOWN MUT. INS. CO.<SMALL><SUP>*</SUP></SMALL>

80 S.W. 289

106 Mo. App. 684

BAYLESS v. MERCANTILE TOWN MUT. INS. CO.^*

Kansas City Court of Appeals. Missouri.

April 4, 1904.

INSURANCE — POLICIES — ASSIGNMENT — NEW CONTRACT—CONDITIONS—BREACH BY ASSIGNOR —EFFECT — INVENTORY CLAUSE — COMPLIANCE BY ASSIGNEE—TIME.

1. Where, on plaintiff's purchase of a stock of goods, the seller assigned an insurance policy thereon, which assignment was approved by the insurer, such assignment constituted a new contract between the insurer and the assignee, so that it was not subject to forfeiture for a breach of an inventory clause by the assignor.

2. Where a policy on a stock of goods, providing that, if an inventory had not been taken within 12 months prior to the date of the policy, one should be taken within 30 days thereafter, and that insured should keep a set of books containing a complete record of the business, was assigned to a purchaser of the goods, he was entitled to 30 days after such assignment within which to take an inventory and commence keeping books.

Appeal from Circuit Court, Gentry County; Gallatin Craig, Judge.

Action by N. M. Bayless against the Mercantile Town Mutual Insurance Company. From a judgment in favor of plaintiff, defendant appeals. Affirmed.

Fyke Bros. and Snider & Richardson, for appellant. Ed. E. Aleshire, for respondent.

BROADDUS, J.

The policy sued on was originally issued by defendant to W. G. Leonard on the 22d day of August, 1902, insuring a stock of merchandise at Alanthus, Mo. On the 25th day of October, 1902, the said Leonard assigned said policy to plaintiff, who had become the owner of the property, and on which day the agent of the defendant approved of said assignment. On the 30th day of October following, a fire occurred which destroyed the whole property insured. The policy recites that, if an inventory of the goods should not be taken within 12 months prior to its date, then one should be taken within 30 days thereafter, and, for failure to take inventory, as thus specified, the policy would become void from that time. And it was also stipulated that the assured would keep a set of books which would plainly present a complete record of all business he has transacted, including all purchases, sales, and shipments, for both cash and credit, from the date of such inventory, and that, for security, he would keep such inventory and books in a fireproof safe. Whereas, plaintiff does not concede that Leonard, the original policy holder, had taken no inventory of the merchandise from the date of the policy...