Jones v. Columbian Mut. Life Ins. Co.
| Decision Date | 25 April 1944 |
| Docket Number | 6713. |
| Court | Court of Appeal of Louisiana — District of US |
| Parties | JONES v. COLUMBIAN MUT. LIFE INS. CO. |
William T. Holloway, of Jonesboro, for appellant.
Charles H. Morton, of Jonesboro, for appellee.
Plaintiff is a policyholder of the defendant insurance company under a contract of insurance issued February 11, 1919. The policy in question is of the type known as a twenty-payment life contract, and plaintiff alleges that he paid all premiums until the policy was paid up, which fact was evidenced by a communication from the home office of the defendant company and by endorsement on the face of the policy, as follows:
'Memphis Tennessee.
'All required payments having been paid for the full period of twenty years, this covenant No. 89-987 is in accordance with its terms fully paid up.
'This 14th day of March, 1939.
'D. M Haste
'Assistant Secretary'
Plaintiff shows that more than two years after the entry of the endorsement above set forth he received a communication from the defendant company dated August 1, 1941, demanding payment of an indebtedness existing by reason of an assessment lien against his policy, and advising that failure to pay the assessment would have the effect of voiding the policy. On September 26, 1941, plaintiff filed his petition in this suit, the prayer of which petition reads as follows:
'Wherefore your petitioner prays that this petition be filed, that the defendant be served and cited in accordance with law and that after due trial had there be judgment herein in favor of your petitioner and against the defendant, the Columbian Mutual Life Insurance Company, declaring the said acts on the part of the defendant company, its officers and agents null and void and of no effect whereby they attempted to levy additional premiums on the said contract, declaring and holding the said contract valid and binding for the face amount thereof $1,000.00 payable at the death of the insured, without the payment of additional premiums or assessments, and holding that any acts or attempted acts to reduce the face amount null and void and of no effect, all costs to be paid by the defendant.
'Your petitioner does further plead estoppel as a defense to any attempt to require additional payments or to reduce the value of the said contract.
'Your petitioner further prays in the alternative and only in the alternative that the court should hold that there is a lien against the said contract or policy that the said contract be declared fully paid up and binding for the face amount, less the lien without the necessity of any additional premiums or assessments of any nature, all costs to be paid by the defendant.'
There was judgment of the trial Court rejecting plaintiff's demands and dismissing his suit, from which judgment plaintiff prosecutes this appeal.
The material facts in connection with the subject matter of this litigation, and the history of the entire course of action which resulted in this suit, are set forth in detail in the opinion of this Court in the case of Lewis v. Columbia Mut. Life Ins. Co., La.App., 197 So. 619, the record of which case has been made a part of the record in this suit.
Despite the diligent effort which has been made by able counsel for plaintiff to distinguish the present case from the Lewis case, we are unable to find any such distinction, either with reference to the material facts or the law, which would have the effect of setting apart the instant case.
Plaintiff's principal contention rests upon the fact that defendant admitted, by letter and by endorsement on the policy, the payment of all premiums due thereon, and, accordingly, plaintiff seeks a judgment declaring the contract of insurance valid and binding without payment of additional premiums or assessments. Plaintiff also pleads estoppel against any attempt on the part of defendant to require additional payments or to reduce the value of the insurance contract. Alternatively, plaintiff prays that the contract of insurance be declared fully paid and binding for the face amount, less the lien, without the necessity of payment of additional premiums or assessments.
The whole matter goes back to a determination of the validity of assessments made by the defendant company against all holders of insurance contracts originally issued under the fraternal plan and organization of the Eminent Household of Columbia Woodmen. As we have stated, the facts in connection with the levying of these assessments are fully considered in the voluminous opinion in the Lewis case, and there can be no longer any question as to the validity of the assessment.
The demand made upon this plaintiff, as set forth in the communication of August 1, 1941, was as follows:
'Columbian Mutual Life Insurance Company
'Memphis, Tennessee
'August 1st, 1941
'Mr. Joseph N. Jones
'Jonesboro, Louisiana
'Dear Mr. Jones:
'Because of the assessment made in 1937 against your Covenant, numbered 89-987, and imposed as a lien thereon, it is necessary to call your attention to the following facts.
Loan indebtedness with interest at ___% per annum, from ________ to $ None
Assessment lien with 5% interest per annum, from March 16, 1937, to $578.95
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The reserve on your Covenant on September 1, 1941, will amount to $571.03
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Excess indebtedness on September 1, 1941 $7.92
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'You will observe that the indebtedness which will exist...
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