Jackson v. St. Paul Fire & Marine Ins. Co.

• Decision Date: 05 May 1885
• Citation: 1 N.E. 539,99 N.Y. 124
• Court: New York Court of Appeals Court of Appeals
• Parties: JACKSON, Receiver, etc., v. ST. PAUL FIRE & MARINE INS. CO.

99 N.Y. 124

1 N.E. 539

JACKSON, Receiver, etc.,

v.ST. PAUL FIRE & MARINE INS. CO.

Court of Appeals of New York.

Filed May 5, 1885.

Mr. Stevenson, for appellant, James Jackson, receiver, etc.

Mr. Hoxie, for respondent, St. Paul Fire & Marine Ins. Co.

DANFORTH, J.

The questions upon this appeal relate to the liability of the defendant on a contract of reinsurance made by it in favor of the Paterson Fire Insurance Company, and are- First, whether it was obtained by misrepresentation, and so void ab initio; and, if not, then, second, whether the action is barred by a limitation clause contained in the contract. The facts agreed upon, or found by the trial court, so far as material, are these: The Paterson Company, on the fourteenth of August, 1876, at San Francisco, undertook to insure one E. Sherwood against loss by fire to the amount of $4,500, as follows: ‘$3,000 on his one and one-half story hard-finished frame boarding-house building, * * * and $1,500 on furniture, etc., contained in it.’ On the next day, its agent addressed to the defendant a written application, saying: ‘Reinsurance is wanted by the Paterson Fire Insurance Company for $1,500, from August 14, 1876, to August 14, 1877, on their interest as insurers, under their policy, No. 582, issued to E. Sherwood, * * * covering $4,500, viz.: $3,000 on his one and one-half story hard-finished frame boarding-house building, * * * and $1,500 on furniture,’ etc., ‘contained therein.’

The application was granted, and the defendant issued its policy, which recited that ‘The St. Paul F. & M. Ins. Co., of St. Paul,’ ‘do reinsure’ the Paterson Company ‘against loss or damage by fire to the amount of $1,500 on their interest as insurers under their policy, No. 582, issued to E. Sherwood;’ and then follows, in the language of the application, a statement as to the amount and distribution of insurance and description of the property insured under that policy. Upon the trial it was admitted that in 1876 ‘a fire occurred and destroyed the property insured in policy 582 to the amount of $4,100.’ The Paterson Insurance Company declined paying. They were sued, and, after notice to the defendant of the claim made and pendency of the action, a trial was had, and judgment obtained against them for the amount claimed, with costs. The plaintiff was subsequently appointed receiver of the property and assets of the Paterson Company, and brought this action to recover the amount due according to the terms of reinsurance. Before the trial court he succeeded. The general term, however, reversed the judgment, and the respondent seeks to sustain that decision, upon grounds involved in the questions above stated.

First, as to misrepresentation. It was admitted upon the trial that Sherwood's ‘house was hard-finished on the lower story, but the rooms and hall-way, composing the upper or half-story, were cloth-lined, and not hard-finished; but, notwithstanding this, the court found that the general character of the...