Kavanagh v. Omaha Life Ass'n

• Decision Date: 13 December 1897
• Citation: 84 F. 295
• Parties: KAVANAGH v. OMAHA LIFE ASSN.
• Court: U.S. District Court — Northern District of Illinois

84 F. 295

KAVANAGH v. OMAHA LIFE ASSN.

United States Circuit Court, N.D. Illinois, Northern Division.

December 13, 1897

At Law. On demurrer to declaration.

K. M Landis, for plaintiff.

Wm. A Ball, for defendant.

GROSSCUP District Judge (orally)

The action is to recover on a policy of $2,000, issued by the Life Mutual Association, a corporation of Illinois upon the life of Kavanagh. The declaration, in effect, sets forth the issuance of the policy, its performance by the insured during his lifetime, his death, and the consequent maturing of the policy as against the Mutual Association of Illinois. It further charges that, subsequent to the death of the defendant, the Omaha Life Association, a corporation under the laws of Minnesota, consolidated with the Illinois corporation. The second count of the declaration, averring all the other particulars, except the fact of consolidation avers the obtaining of amended articles of incorporation by the Minnesota corporation, whereby it was authorized to assume the risks and reinsurance of other life insurance companies, corporations, associations, etc., and avers also the transference, in pursuance of the amended articles, of the membership of the Illinois Association to the Minnesota Association.

There is no statute of the state of Illinois expressly authorizing the consolidation of a domestic corporation with a foreign corporation. On the contrary, in those provisions of the statute relating expressly to consolidation there is a prohibition against the consolidation of a domestic with a foreign corporation. Section 65, c. 32, Rev. St. Ill. 1897 (passed in 1867), provides that, in all cases when any company or corporation chartered or organized under the laws of this state shall consolidate its property, stock, or franchises with any other company, such consolidated company shall be liable for all the debts of each company included in the consolidation. The supreme court of Illinois, in construing this section (American Loan & Trust Co. v Minnesota & N.W.R. Co., 157 Ill. 641, 42 N.E. 153), ruled that this section does not, either expressly or impliedly, authorize consolidations, and is meant only to fix liability in case of consolidations otherwise authorized. There is therefore in this state no law authorizing the consolidation of the two insurance companies. But the defendant in this case is not liable to the complainant except by virtue of its own...