Haseltine v. Farmers Mut. Fire Ins. Co of Billings

• Decision Date: 10 June 1924
• Docket Number: No. 24047.,24047.
• Citation: 263 S.W. 810
• Parties: HASELTINE, v. FARMERS' MUT. FIRE INS. CO. OF BILLINGS, CHRISTIAN COUNTY.
• Court: Missouri Supreme Court

263 S.W. 810

HASELTINE, v. FARMERS' MUT. FIRE INS. CO. OF BILLINGS, CHRISTIAN COUNTY.

No. 24047.

Supreme Court of Missouri, Division No. 1.

June 10, 1924.

represented amount of insurance, or the value of the property, for three-fourths of which only the company was liable under its constitution," so that extrinsic evidence, as of understanding of parties at time of contract, might be considered to determine its meaning.

3. Evidence 448—Parol evidence admissible in construing ambiguous contract.

If the language of a contract is ambiguous or doubtful, extrinsic evidence as to its meaning is admissible.

4. Contracts 170(1)—Construction by parties ordinarily accepted.

Construction put on a contract by the parties will ordinarily be accepted by the court.

5. Insurance 146(3)—Rule of construction of policy against insure held inapplicable.

Rule that an insurance policy will be strictly construed against insurer has no application where, the rule against parol evidence being removed by ambiguity of the contract, the parties agree as to what was in fact intended.

James T. Blair, P. J., dissenting.

Appeal from Circuit Court, Greene County; Guy D. Kirby, Judge.

Suit by Lincoln Haseltine against the Farmers' Mutual Fire Insurance Company of Billings, Christian County, Missouri. Judgment for defendant, and plaintiff appealed to the Court of Appeals (240 S. W. 815), which certifies case for final disposition. Affirmed.

Wright & Ruffin, of Springfield, for appellant.

W. P. Sullivan, of Billings, and O. E. Gorman, of Springfield, for respondent.

WOODSON, J.

The plaintiff brought this suit in the circuit court of Greene county against the defendant on an insurance policy covering certain farm property. The company is one of what is known and called a farmers' mutual fire insurance company, and the only question in the case is: Was the company liable for the full amount of the insurance stated in the policy, or only three-fourths of the amount?

The case was tried upon an agreed statement of facts, which are fully set out in the abstract of the record. The circuit court tried the cause and held that the defendant was liable for only three-fourths of the amount insured.

After moving unsuccessfully for a new trial, the defendant appealed the cause to the Springfield Court of Appeals.

The case was argued and submitted to that court, and thereafter two well-considered and able opinions were written and filed, one by Bradley, J., in which Farrington, J., concurred, and the other, a dissent by Cox, P. J.; and under the mandate of the Constitution the case was by that court duly certified to this for final disposition.

After having carefully considered both the opinion and the dissent, I adopt the opinion as that of my own and recommend it to this court with the suggestion that it be adopted as the opinion of this court. It is as follows:

BRADLEY, J.

Plaintiff sued to recover on a policy issued by defendant. The cause was submitted to the court on an agreed statement of facts, and the finding and judgment went for defendant, and plaintiff appealed.

Defendant is a farmers' mutual fire insurance company organized and incorporated under what is now section 6464 et seq., R. S. 1919, with its principal office at Billings, Mo. Defendant had authority to do business in Christian, Greene, Lawrence, and Stone counties. Plaintiff made application to defendant for insurance against loss or damage by fire or lightning. This application appears in form as follows:

"I, the undersigned, hereby apply for insurance against loss or damage by fire or lightning to the amount of twenty-nine hundred dollars in the Farmers' Mutual Fire Insurance Company of Billings, Christian county, Mo., on the following property owned by the undersigned while located on of section 25, township 29, range 23, Greene county, Mo., and not elsewhere, for a period of five years from date. The insurance then to be renewed at the expense of the company, and I hereby accede to the constitution and by-laws of the above-named company, and promise to faithfully adhere to and carry them out.

"Description of Property.

                On stone dwelling ............................ $1,500
                On house property and one piano ..............    525
                Implement shed ...............................     50
                On stone barn  ...............................    625
                On implements and machinery, vehicles and
                harness ......................................    200
                                                               ______
                   Total amount of insurance.................. $2,900"
                

On this application defendant issued its policy as follows:

                "$2,900.00           Renewal.           No. 415
                "Farmers' Mutual Fire Insurance Company' ok
                Billings, Christian County, Missouri
                "Lincoln Haseltine, R. 7, Springfield, Mo
                According to application, you are a member of
                the above company, and insured since October
                7, 1914, against loss by fire and lightning, for
                the sum of twenty-nine hundred dollars, on the
                following property, located on ____ of section
                25, township 29, range 23, Greene county, Missouri
                               "Description of Property
                On stone dwelling ............................. $1,500
                On house property, and one piano ..............    625
                On implement shed .............................     50
                On stone barn .................................    625
                On farm implements and machinery vehicles
                and harness ...................................    200
                                                                  _____
                  Total amount of insurance ...................  $2,900"
                

Attached to the policy is a permit, as follows:

"Permission is hereby granted holder of policy 415 to place additional insurance to the amount of $1,503 on dwelling and $500 on household goods."

On November 30, 1915, while plaintiff's policy was in full force and effect, a fire occurred which destroyed the house, household goods, piano, and farm implements. The total loss as listed in the, policy and application amounted to $2,225. Defendant paid $1,338.75, three-fourths of the loss, under an agreement that such payment would not prejudice its right to contest the payment of the remaining one-fourth. Plaintiff contends that defendant is liable for the full $2,225, while defendant contends that it is only liable for three-fourths of that mount, and that, having paid three-fourths, it has discharged Its obligation.

The application, the policy, and defendant's constitution and by-laws, all a part of the contract, must be considered together in determining and construing the contract of insurance. The provisions of the constitution and by-laws material here are as follows:

Article 3: "The business of the company shall be conducted Upon the Mutual Assessment Plan, and no premium shall be paid. An assessment is to be levied in case of actual loss by fire or lightning."

Section 3 of article 4: "Duties of the Secretary. —It shall be the duty of...