Conn. Gen. Life Ins. Co. v. Chase

• Decision Date: 03 March 1900
• Parties: CONNECTICUT GEN. LIFE INS. CO. v. CHASE et al.
• Court: Vermont Supreme Court

47 A. 825

72 Vt. 176

CONNECTICUT GEN. LIFE INS. CO.

v. CHASE et al.

Supreme Court of Vermont. Washington.

March 3, 1900.

Exceptions from Washington county court; Watson, Judge.

Action on a bond by the Connecticut General Life Insurance Company against Myron F. Chase and others. From a judgment in favor of plaintiff, defendants bring exceptions. Reversed.

Argued before TAFT, C. J., and ROWELL, TYLER, MUNSON, THOMPSON, and WATSON, JJ.

Dillingham, Huse & Howland, for plaintiff.

Senter & Goddard, for defendant Marvin.

WATSON, J. Prior to April, 1888, Frank C. Griswold was in the employ of the plain tiff as superintendent of agencies, and as such had authority to appoint agents and make arrangements and trades with them, subject to the approval of the company; and thus he continued until after the execution and delivery to the company of the bond in question by the defendants on the 17th day of October, 1893. Acting in that capacity, Griswold in April, 1888, employed the defendant Myron F. Chase to work for the plaintiff, and within a month thereafter Chase entered upon his employment, and thenceforth thus continued until April, 1896. At the time of Chase's first employment, the plaintiff advanced to him about $300, understanding from his statement to Griswold that he was to use it to pay a note of the same amount to Mr. Bull, agent of the Phoenix Mutual Life Insurance Company, which amount Chase afterwards, and before the giving of the bond in question, repaid to the plaintiff. On the 1st day of April, 1893, Chase and the plaintiff entered into a written contract whereby the former was made the general agent of the latter at Montpelier and vicinity, to solicit and procure applications for insurance, and deliver policies is sued thereon, and also premium receipts, upon payment to him of the moneys named therein; and Chase was to hold the moneys thus collected as a fiduciary trust, not apply them to any personal use or purpose whatever, keep full and accurate accounts thereof, and on or before the 5th day of every month transmit to the plaintiff a full and true report of all collections made and of all expenses incurred, and therewith transmit and pay over the amount of moneys due the plaintiff, received by him as such agent, and not before paid over, and that he should furnish to the plaintiff, and maintain with it, a sufficient and satisfactory bond for the faithful performance of the duties pertaining to his agency, and for the prompt payment of all moneys and securities received by him. About two weeks prior to the giving of the bond in suit, Griswold came to Montpelier, in his representative capacity for the plaintiff, and found that Chase had collected and not accounted for premiums of the plaintiff amounting to between $1,000 and $1,200, whereupon Griswold and Mr. Hudson, the plaintiff's secretary, who was also present, agreed with Chase that he might continue in the plaintiff's employment upon condition that he pay the shortage and furnish a new bond. Thereafter, and before the giving of the new bond, Chase, through his friends, procured the amount of his arrearage and paid the same to the plaintiff. With matters standing in this way, the bond in question was executed and delivered to the plain tiff on the 17th day of October, 1893, conditioned that: "Whereas, the above-named M. F. Chase has been appointed by said company its agent for the purpose of procuring applications for life insurance, collecting premiums thereon, and performing such other duties in connection therewith as may...