Felder v. Federal Crop Ins. Corporation

• Decision Date: 26 December 1944
• Docket Number: No. 5305.,5305.
• Citation: 146 F.2d 638
• Parties: FELDER v. FEDERAL CROP INS. CORPORATION.
• Court: U.S. Court of Appeals — Fourth Circuit

146 F.2d 638 (1944)

FELDER v. FEDERAL CROP INS. CORPORATION.

No. 5305.

Circuit Court of Appeals, Fourth Circuit.

December 26, 1944.

P. L. Felder, Jr., of Orangeburg, S. C. (Felder & Rosen, of Orangeburg, S.C., on the brief), for appellant.

Louis M. Shimel, Asst. U. S. Atty., of Charleston, S. C. (Claud N. Sapp, U. S. Atty., of Columbia, S. C., on the brief), for appellee.

Before SOPER and DOBIE, Circuit Judges, and CHESNUT, District Judge.

DOBIE, Circuit Judge.

This is a civil action brought by M. H. Felder against the Federal Crop Insurance Corporation to recover under a crop insurance policy which was issued to him under the Federal Crop Insurance Act, 7 U.S.C.A. §§ 1501-1518, hereinafter called the Act.

The Federal Crop Insurance Corporation is an agency of and within the Department of Agriculture. Under the Act the Secretary of Agriculture and the Corporation were authorized to issue such Regulations as might be necessary to carry out the provisions of the Act. Code of Federal Regulations, Title 7, § 411.1 et seq. By the terms of the instant insurance contract, certain of these Regulations are incorporated as part of the contract. These provisions, when pertinent, will be set forth below.

On March 4, 1942, Felder, on proper forms, applied for cotton crop insurance. There is no question as to the existence of a valid contract. Nor is the question raised here as to whether the alleged loss was one covered by the contract of insurance.

On August 28 1942, Felder, in answer to an inquiry made August 24, 1942, by the County Administrative officer of the Corporation, notified the officer of an anticipated loss as a result of adverse weather conditions and damage by boll weevil. Felder admits, and the records show, that the last of his cotton crop was ginned October 14, 1942. On December 4, 1942, Felder was requested to appear at the local administrative office to sign an application for crop insurance loss. Felder testified that this application was signed by him on January 18, 1943. The carbon copy of this application (received by Felder) is blurred beyond recognition; however, the original copy, retained by the officer, bears the date of March 1, 1943. On February 17, 1943, Felder received a letter from the County Committee to the effect that no definite action had been taken in the matter. Later, on February 19, 1943, Felder received a letter from the County Committee requesting additional information. Finally, by letter of May 26, 1943, the County Committee definitely declined to entertain Felder's claim. Whereupon Felder instituted this action in the District Court of the United States for the Eastern District of South Carolina. From a judgment entered against him on a directed verdict, Felder has duly appealed.

The sole question here is whether Felder sufficiently complied with the terms of his contract in making timely proof of loss.

Paragraph 13 of the application for insurance (identical with Section 411.9 of the Regulations under the Act) provides:

"13. Time of Loss: — Loss, if any, shall be deemed to have occurred at the completion of weighing in of the insured crop at the gin or disposal of the harvested crop or January 21, 1943 (unless such time is extended in writing by the Corporation), whichever occurs first, unless there is a total or substantially total destruction of the entire crop at an earlier time, in which event the loss shall be deemed to have occurred at the time of such total or substantially total destruction as determined by the Corporation. The cotton crop shall be deemed to have been substantially totally destroyed if the Corporation finds that it has been so badly damaged that farmers generally in the area where the farm is located and on whose farms similar losses occurred would not further care for the crop or harvest any portion thereof."

Further, paragraph 14 of the application (Identical with Section 411.10 of the Regulations under the Act) provides:

"14. Proof of Loss: — If a loss is claimed, the insured shall submit to the Corporation at the office of the county committee, on a form prescribed for that purpose, a statement in proof of loss containing such information as may reasonably be required be required regarding the insured crop. Such statement in proof of loss shall be submitted not later than 30 days after the time of loss, unless such time is extended in writing by the Corporation. It shall be a condition precedent to any liability under the insurance contract that the insured establish that any loss for which claim is made has been directly caused by a hazard insured against by the insurance contract during the term of the contract, and that the insured further establish that such loss has not arisen from or been caused by, either directly or indirectly, any of the hazards not insured against by the insurance contract."

Thus it is clearly apparent that Felder, in order to recover here, must bring himself within the requirements of these two provisions. This he has failed to do.

Paragraph 13 patently prescribes three alternative events (whichever occurs first) with reference to which the time of loss may be established. These are: (1) Completion of weighing in of the insured crop at the gin; (2) disposal of the harvested crop if disposed of on or before January 21, 1943; (3) January 21, 1943 if harvested crop is retained after that date. (Words within brackets are added.)

Since Felder completed his ginning on October 14, 1942, under the first alternative, his loss was...