International Indemnity Co. v. Steil
| Decision Date | 24 January 1929 |
| Docket Number | No. 8005.,8005. |
| Citation | 30 F.2d 654 |
| Parties | INTERNATIONAL INDEMNITY CO. v. STEIL. |
| Court | U.S. Court of Appeals — Eighth Circuit |
William M. Burton, of Omaha, Neb. (Rosewater, Mecham & Burton, of Omaha, Neb., and Strong & Seff, of Sioux City, Iowa, on the brief), for plaintiff in error.
F. E. Gill, of Sioux City, Iowa (Burgess & Gill, of Sioux City, Iowa, on the brief), for defendant in error.
Before KENYON, Circuit Judge, and SYMES and MARTINEAU, District Judges.
On May 26, 1926, the International Indemnity Company, defendant in the court below, insured Lloyd Sleezer against loss from liability for damages arising out of the use of his automobile. On June 26th, following, Lloyd Sleezer, while operating his automobile, collided with a train, causing injury to the plaintiff, Maude A. Steil, and to himself. From his injuries he died on the following day.
The contract of insurance was an Iowa contract, but the collision occurred in South Dakota. After being injured, Sleezer was taken to Iowa, where he died. An administrator of his estate was appointed in Iowa. The plaintiff sued Sleezer's administrator in Iowa, for injuries sustained in the automobile accident, and recovered a judgment for $11,500. The defendant was notified of the suit against the Sleezer estate, but made no defense. This judgment remains unpaid, and is uncollectible out of the estate of Sleezer.
Suit was then instituted by the plaintiff against the defendant insurance company for $5,000, the face of the policy, which it had issued to Sleezer, and the court below rendered judgment for that amount with interest. From this judgment the defendant prosecutes this writ of error.
There is no substantial dispute as to the material facts in this case. The insurance policy sued on was issued and delivered, and the premiums paid. There are many issues of law raised by the pleadings and argued in the briefs of counsel, but we are of the opinion that a decision upon only one of these issues is necessary to dispose of the case.
Condition 9 of the policy provides that: "No action for the recovery of any loss covered by this policy arising or resulting from claims upon the assured for damages, shall be sustainable until the amount of such loss shall have been determined by a final judgment against the assured by the court of last resort after trial of the issue."
Condition 10 of the policy is as follows: "It is a condition of this policy that the insolvency or bankruptcy of the assured shall not release the company from the payment of damages for injury sustained or loss occasioned during the life of this policy, and in case execution against the assured is returned unsatisfied in an action brought by the injured person, or his or her personal representative, in case death results from the accident, that action may be maintained by such injured person, or his or her personal representative against the company under the terms of this policy for the amount of the judgment in such action, not exceeding the amount of the limits of indemnity provided in this policy."
Section 8940, Code Iowa 1924, after providing that an insurance company may, in Iowa, insure owners against liability for loss arising out of the use of their automobiles, contains this further provision: "Provided, that should an execution on a judgment against the insured be returned unsatisfied in an action by a person who is injured, or whose property is damaged, when such owner or...
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