John L. Walker Co. v. NATIONAL UNDERWRITERS'CO.

• Decision Date: 08 December 1924
• Docket Number: No. 3450.,3450.
• Citation: 3 F.2d 102
• Parties: JOHN L. WALKER CO. v. NATIONAL UNDERWRITERS' CO.
• Court: U.S. Court of Appeals — Seventh Circuit

3 F.2d 102 (1924)

JOHN L. WALKER CO. v. NATIONAL UNDERWRITERS' CO.

No. 3450.

Circuit Court of Appeals, Seventh Circuit.

December 8, 1924.

Murphy O. Tate, of Chicago, Ill., for plaintiff in error.

Frederick A. Brown, of Chicago, Ill., for defendant in error.

Before ALSCHULER, EVANS, and PAGE, Circuit Judges.

ALSCHULER, Circuit Judge.

Electing to stand by its amended declaration, to which the court had sustained a demurrer, judgment was rendered against the plaintiff in the action, John L. Walker Company, which judgment the writ of error attacks.

The declaration charged the defendant, the National Underwriters' Company, with publishing an alleged libelous article concerning plaintiff, a corporation. The charge is that plaintiff carried on business of insurance as "the authorized attorney in fact for the Ft. Dearborn Casualty Underwriters and other insurance carriers, and in the regular course of business had built up a large and comprehensive insurance clientéle, writing multiple line insurance, including automobile, plate glass, and workingmen's compensation coverage upon the `self-insurers' or reciprocal plan, the rates and premiums considerably below the rates and premiums charged by the so-called conference and stock companies"; that it had acquired a reputation for sound business judgment, and that it had built up a large business in placing such insurance, and had always dealt fairly and honestly with the public, whereby it acquired large gains and a growing profitable business in placing such insurance, particularly the business of placing workingmen's compensation insurance; and that by the publication plaintiff was greatly damaged.

A reading of the entire article complained of, which is quite lengthy, makes it apparent to us that the alleged libel was of and concerning the organization known as the Ft. Dearborn Casualty Underwriters alone. It is conceded that, if the relation between the plaintiff and the Ft. Dearborn concern was only that of principal and agent, any damage accruing from the alleged libelous article would be recoverable by the Ft. Dearborn organization or its members, and not by its agents; indeed, there is nothing in the declaration to indicate special damage to the plaintiff which did not wholly accrue to those for whom the plaintiff was acting.

But the contention is made that plaintiff's right to maintain this action is given by the laws of Illinois creating such concerns as the Ft. Dearborn Casualty Underwriters and providing for the peculiar relation between it and its attorney in fact. Laws Ill. 1921, p. 492 (Smith-Hurd Rev. St. Ill. 1923, c. 73, §§ 443-468), an act concerning the business of reciprocal or inter insurance, approved June 20, 1921, in force July 1, 1921. The act undertakes to provide for insurance whereby an aggregation of policy holders becomes liable for losses incurred by any of them. Each pays a stipulated sum or rate, certain reserves must be kept on hand, and if amounts paid in are more...