Borgards v. Farmers' Mut. Ins. Co.

• Decision Date: 20 February 1890
• Citation: 79 Mich. 440,44 N.W. 856
• Parties: BORGARDS v. FARMERS' MUT. INS. CO.
• Court: Michigan Supreme Court

44 N.W. 856

79 Mich. 440

BORGARDS v. FARMERS' MUT. INS. CO.

Supreme Court of Michigan

February 20, 1890

Case made from circuit court, Ottawa county.

Action by John Borgards against the Farmers' Mutual Insurance Company on a fire insurance policy. Judgment for defendant. Plaintiff appeals.

S Wesselius and R. A. Maynard, for appellant.

J C. Post, for appellee.

GRANT J.

The defendant was organized under an act to provide for the incorporation of mutual fire insurance companies, approved April 15, 1873. On March 25, 1881, it issued to plaintiff a policy of insurance covering buildings and personal property, the insurance to continue for the term during which the plaintiff should remain and be a member of said corporation. Membership was maintained by the payment of certain fees and 1 mill per cent. on the amount insured at the time of issuing the policy, and the assessments made thereafter. The policy was in full force and effect August 1 1887, when plaintiff's barn and its contents were destroyed by fire caused by sparks from a steam-engine used in threshing grain for plaintiff. At the time the policy was issued no by-law existed in regard to the use of steam-power affecting the right to recover. In his application plaintiff agreed to observe and be governed by all the conditions of its charter and by-laws as they then existed, and any changes that might thereafter be made in the same. At the annual meeting held January 14, 1882, the following by-law was adopted: "This company will not be liable for loss or losses caused by fire from steam-power used on or about the premises of any member of the company." A copy of this by-law was immediately given to plaintiff. He made no objection, but continued his membership, and attended the annual meeting in January, 1886, when this by-law, with others, was read. The statute provides that the corporators or the trustees or directors, as the case may be, shall have power to make such by-laws as may be deemed necessary for the government of its officers and members, and the conduct of its affairs. The charter of the defendant provides that at the annual meeting the members present shall, among other things, determine a limitation of single hazards, the compensation of its officers, adopt by-laws, etc. It also carefully limits the powers of the board of directors, and provides that they shall make and adopt all needful by-laws for the government of its...