Glover v. Lee

• Citation: 140 Ill. 102,29 N.E. 680
• Parties: GLOVER et al. v. WELLS. SAME v. LEE.
• Decision Date: 18 January 1892
• Court: Illinois Supreme Court

140 Ill. 102

29 N.E. 680

GLOVER et al.

v.WELLS.

SAME

v.LEE.

Supreme Court of Illinois.

Jan. 18, 1892.

Appeal from appellate court, first district.

Action by attachment by Henry R. Glover and another against the Dubuque Mattress Company, defendants, and eight insurance companies, garnishees. E. P. Wells, receiver of the Commercial National Bank of Dubuque, lowa, and P. J. Lee, cashier of the German Bank of Dubuque, Iowa, intervened. Judgment was entered in favor of the interveners and affirmed by the appellate court, and plaintiffs appeal. Affirmed.Weigley, Bulksley & Gray, for appellants.

Windes & Sullivan, for appellee Lee. E. H. Gary, for appellees, garnishees.

M. H. Beach, for Wells, receiver, and the American Fire Ins. Co. of Philadelphia, garnishee.

The other facts fully appear in the following statement by CRAIG, J.:

This is an appeal from a judgment of the appellate court affirming two judgments rendered in the superior court of Cook county in favor of two intervening claimants of certain money sought to be recovered by the appellants, Glover & Willcomb, by attachment and garnishee process. The facts necessary to an understanding of the questions involved may be stated briefly as follows: Glover p Willcomb commenced an attachment suit in the superior court of Cook county against the Dubuque Mattress Company, an Iowa corporation, and caused the attachment to be served on eight insurance companies as garnishees. The companies answered the interrogatories, each admitting the issuance of a policy to the said Dubuque Mattress Company, a loss thereunder, and that the loss had been adjusted at $500 on each policy. Two of the companies stated in their answers that their policies contained a clause, ‘Loss, if any, payable to Commercial National Bank, as its interest may appear.’ The other six companies set up a notice to them of the assignment of their respective policies on or about the 2d of April-the loss having occurred on April 1, 1889-to P. J. Lee, the cashier of the German Bank of Dubuque, Iowa. Judgment was rendered against the Dubuque Mattress Company and in favor of the plaintiffs for $1,581.20 on May 20, 1889; and in response to a notice ordered by the court to be served upon the Commercial National Bank and P. J. Lee, cashier of the German Bank, interpleaded, setting up their respective claims to the money on the different policies of insurance; and upon a trial by the court without a jury, judgments were rendered against the eight insurance companies for $500 each in favor of the Dubuque Mattress Company; for the use of E. P. Wells, receiver of the Commercial National Bank, for $1,000; and for the use of P. J. Lee, cashier of the German Bank, for $2,665.28; and for the balance of $334 for the use of the plaintiffs.

CRAIG, J., ( after stating the facts.)

We must consider first the objections to the judgment rendered in favor of Wells, receiver of the Commercial National Bank. As to this judgment, the main ground relied upon to reverse it is based upon the theory that the bank had no insurable interest in the property insured. It appears from the evidence that John Kopp and Henry Soner were engaged in business as a firm known as the ‘Dubuque Mattress Company.’ The firm borrowed of the Commercial National Bank $1,000, and gave its demand note, signed by Dubuque Mattress Company, payable to the order of John Kopp, and indorsed by him to the bank. At the time the loan was made and the note given to the bank it was agreed that the property of the firm should be insured, and the policies assigned to the bank in an amount sufficient to secure the indebtedness of the bank. In 1884, after this arrangement was made, Kopp and Soner, with others, organized a corporation known as the ‘Dubuque Mattress Company,’ and the business of the firm was transferred to the corporation, and the corporation agreed to continue the business, and pay all the liabilities of the firm. Kopp was elected president of the corporation, and, in pursuance of the agreement with the bank, two policies of insurance were issued to Dubuque Mattress Company for $500 each in the property for the corporation, containing this clause: ‘Loss, if any, payable to Commercial National Bank, as its interest may appear.’ These policies were never in the possession of the corporation, but, when issued, they were delivered directly to the bank, and held by the bank as security for the loan due from the corporation to the bank. The bank also held as collateral security for the loan $2,500 of the stock of the corporation. There are cases holding that a stockholder in an incorporated company has an insurable interests in the corporate property. Seamen v. Insurance Co., 18 Fed. Rep. 250; Same v. Same, 21 Fed. Rep. 778; Warren v. Insurance Co., 31 Iowa, 464. If a stockholder has an insurable interest, as held in the cases cited, the bank, holding the stock as security for money, would also have the same...