Dunn v. Abrams

• Decision Date: 22 February 1896
• Parties: DUNN v. ABRAMS.
• Court: Georgia Supreme Court

25 S.E. 766

97 Ga. 762

DUNN v. ABRAMS.

Supreme Court of Georgia

February 22, 1896

Syllabus by the Court.

1. Although a policy of life insurance stipulated on its face that it should not take effect until the first premium was paid, it was not rendered invalid because the application signed by the insured before he received the policy (and which was copied in and made a part of the policy) stated that the first premium had not been paid, when, as a matter of fact, this first premium was, before the delivery of the policy, paid to the company by the agent who wrote the insurance; and the payment of such premium by the agent, in pursuance of an agreement between him and the insured, was a valuable consideration for a promissory note given to the agent by the insured.

2. A statement by an insurance agent that the first premium upon a policy would be $213, when in fact it was $222.50, is not such a misrepresentation as will make void a promissory note for the former sum, given by the insured to the agent, who by agreement, paid the first premium, and sought to collect from the insured only the amount of the note.

3. The verdict was demanded by the evidence, and therefore the court did not err in directing the jury to find the same, nor in refusing to set it aside.

Error from superior court, Appling county; J. L. Sweat, Judge.

Action by J. B. Abrams against J. D. Dunn. From a judgment for plaintiff, defendant brings error. Affirmed.

E. D Graham and E. P. Padgett, for plaintiff in error.

T. A Parker and Atkinson & Dunwody, for defendant in error.

CALLAWAY,

Special Judge. J. B. Abrams sued J. D. Dunn for $213 principal besides interest and attorneys' fees, due on a promissory note dated March 15, 1893. The note was given by Dunn to Abrams, who was an insurance agent, for a loan of $213, to pay the first premium on a policy of life insurance, written for Dunn by the company which Abrams represented. Dunn pleaded failure of consideration in the note because the policy contained on its face the following requirement: "This policy shall not take effect until the first premium is paid while the insured is in good health," and also contained in a copy of the application for insurance, which was attached to and made a part of the policy, a statement that the first premium had not been paid. Abrams was to pay the first premium, and, as a matter of fact, did pay it in the regular course of his dealings...