Edge v. St. Paul Fire & Marine Ins. Co.

• Decision Date: 29 November 1905
• Citation: 105 N.W. 281,20 S.D. 190
• Parties: EDGE et al. v. ST. PAUL FIRE & MARINE INS. CO.
• Court: South Dakota Supreme Court

105 N.W. 281

20 S.D. 190

EDGE et al. v. ST. PAUL FIRE & MARINE INS. CO.

Supreme Court of South Dakota

November 29, 1905

Appeal from Circuit Court, Faulk County.

Action by Anna Edge and others against the St. Paul Fire & Marine Insurance Company. From a judgment in favor of plaintiffs defendant appeals. Affirmed.

L. W Crofoot, for appellant. Frank Turner, for respondents.

FULLER P. J.

On the 14th day of December, 1901, appellant company insured a barn for Fred P. Thomas, situated on premises then belonging to him, subject to a mortgage in favor of respondent Anna G Edge, to whom the policy of insurance was thereupon delivered, and to which was attached the following clause for her benefit: "Loss, if any, payable to Anna G. Edge mortgagee, as her interest may appear. This slip is hereby attached to and made a part of policy No. 15,719, Aberdeen, S.D. Agency of the St. Paul Fire & Marine Insurance Company of St. Paul, Minn." In addition to the usual condition that the policy shall be void if any change, other than by the death of the insured, take place in the interest, title, or possession of the property without the consent of the insurer indorsed thereon, the policy contains the following provision: "If, with the consent of this company, an interest under this policy shall exist in favor of a mortgagee, *** the conditions hereinbefore contained shall apply in the manner expressed in such provisions and conditions of insurance relating to such interests as shall be written upon, attached or appended hereto."

The partial loss here sought to be recovered was occasioned by a violent wind storm occurring shortly after Fred P. Thomas the owner and mortgagor, had sold and transferred the premises to respondents Hogan, who thereupon paid him the unearned portion of the premium received by such company at the time it executed and delivered the policy. For a valuable consideration, and to avoid the hazard of excessive insurance made payable to a mortgagor in actual possession, the mortgagee was named as payee and given an interest in the policy, which, with the knowledge and consent of the company, was immediately delivered to her and ever thereafter remained in her possession. That the company caused the loss to be regularly adjusted, immediately upon receipt of the notice from the Hogans that their barn had been damaged, is further evidence of an original intention to give the mortgagee a...