FIREMEN'S INSURANCE CO. OF NEWARK, NJ v. Craigie

• Decision Date: 06 February 1962
• Docket Number: No. 16805.,16805.
• Parties: FIREMEN'S INSURANCE COMPANY OF NEWARK, NEW JERSEY, a corporation, Appellant, v. William A. CRAIGIE and Bette P. Craigie, Appellees.
• Court: U.S. Court of Appeals — Eighth Circuit

298 F.2d 457 (1962)

FIREMEN'S INSURANCE COMPANY OF NEWARK, NEW JERSEY, a corporation, Appellant, v. William A. CRAIGIE and Bette P. Craigie, Appellees.

No. 16805.

United States Court of Appeals Eighth Circuit.

February 6, 1962.

Jerome H. Torshen, Chicago, Ill., for appellant. John P. Gorman, Clausen, Hirsh, Miller & Gorman, Chicago, Ill., Frank X. Cronan, Carroll, Thorson, Anderson & Cronan, Minneapolis, Minn., were with him on the brief.

Kenneth W. Green, Minneapolis, Minn., for appellee. O'Connor, Green, Thomas & Walters, Minneapolis, Minn., were with him on the brief.

Before SANBORN, VAN OOSTERHOUT and BLACKMUN, Circuit Judges.

SANBORN, Circuit Judge.

This is an appeal by Firemen's Insurance Company of Newark, New Jersey (hereinafter called "Firemen's"), from a judgment of $96,500 and interest based upon a jury verdict in an action brought by William A. and Bette P. Craigie, as plaintiffs, upon a Minnesota fire insurance policy issued by Firemen's to them, effective December 22, 1959. The policy was procured for the plaintiffs by Wilbur E. Bennington, of Minneapolis, a licensed fire insurance agent, who had been requested in the early part of December, 1959, by William A. Craigie to obtain a fire insurance policy such as that in suit. Bennington solicited the Brandt Insurance Agency, of Minneapolis, an agent for Firemen's, to obtain the policy, and represented that the insurable value of the Craigies' dwelling was $85,000.

Firemen's issued the policy without making any examination or inspection of the insured property or any inquiry about the risk Firemen's was assuming. The policy covered the dwelling against loss by fire for $75,000, its contents for $30,000, and additional living expenses, due to a fire, for $15,000. The dwelling and its contents were completely destroyed by fire on December 24, 1959, two days after the effective date of the policy. Firemen's denied liability for the loss. The Craigies in their complaint demanded judgment for $120,000. Jurisdiction was based on diversity of citizenship.

Firemen's in its amended answer alleged that the plaintiffs had concealed and had misrepresented material facts in the procurement of the policy, and had made false and fraudulent representations in their sworn proofs of loss to the effect (1) that they did not know the cause of the fire, (2) that there was no other insurance, and (3) that the loss of personal property was in excess of $35,000. Firemen's alleged that the Craigies had deliberately set fire to and burned the insured dwelling and contents.

The controverted fact issues were submitted to the jury and resolved by it adversely to Firemen's.

After the trial, Firemen's made a motion for judgment notwithstanding the verdict or, in the alternative, for a new trial. Judge Devitt, before whom the case was tried, in denying Firemen's motion wrote a comprehensive opinion, reported in 191 F.Supp. 710, stating accurately, adequately and in much detail all of the essential facts, as well as the questions of law which were raised, and what he conceived to be the applicable Minnesota law. No useful purpose can be served by a mere repetition or restatement of what Judge Devitt has covered in his opinion.

The questions raised and argued on this appeal are: (1) whether the court erred in instructing the jury that...