Del. Farmers' Mut. Fire Ins. Co. v. Wagner

• Decision Date: 18 January 1894
• Citation: 57 N.W. 656,56 Minn. 240
• Parties: DELAWARE FARMERS' MUT. FIRE INS. CO., OF GRANT, TRAVERSE, AND STEVENS COUNTIES, v. WAGNER.
• Court: Minnesota Supreme Court

56 Minn. 240

57 N.W. 656

DELAWARE FARMERS' MUT. FIRE INS. CO., OF GRANT, TRAVERSE, AND STEVENS COUNTIES,

v.WAGNER.

Supreme Court of Minnesota.

Jan. 18, 1894.

(Syllabus by the Court.)

A mutual insurance company organized under sections 338-347, c. 34, Gen. St. 1878, and the various amendments thereto, has no power or authority to insure the standing or growing grain of one of its members against loss by hail, and such insurance is ultra vires.

Appeal from district court, Stevens county; Brown, Judge.

Action by the Delaware Farmers' Mutual Fire Insurance Company, of Grant, Traverse, and Stevens Counties, against William Wagner, to enforce payment of the premiums agreed to be paid by defendant for insurance against loss to standing corn, caused by hail. There was judgment for defendant, and plaintiff appeals. Affirmed.

J. W. Reynolds, for appellant.

S. A. Flaherty, for respondent.

CANTY, J.

Section 338, c. 34, Gen. St. 1878, as amended at various times since its passage, provides that not less than 25 persons residing in adjoining towns, and owning, collectively, property of not less than $25,000 in value, may form themselves into a corporation for the purposes of mutual insurance against loss or damage by fire, hail, lightning, or storms. Section 347 provides: “Nor shall they insure any property other than detached dwellings and their contents, and farm buildings and their contents, and live stock, and hay and grain in the bin or stack.” The plaintiff corporation was organized under this statute, and the defendant became a member thereof. The amended articles of incorporation specify the hazards to be insured against, and the kinds of property to be insured, as specified in the statute. Neither the statute nor the articles authorize the insurance of standing or growing grain, and the statute, by its terms, expressly forbids it. Notwithstanding this, the plaintiff organized what is called the “Hail Department” of its business, and went into the business of insuring standing grain against loss by hail. It attempted so to insure the defendant's standing grain, and issued him a policy purporting to do so. This is a suit brought by it to enforce payment of the premiums or assessments which he agreed to pay for such insurance. The defendant defended on the ground that such insurance was ultra vires, and beyond the powers of the corporation, and the court below so held, and ordered judgment on that ground for the defendant. We are of the...