Lee v. Mutual Life Ins. Co.

• Decision Date: 29 September 1904
• Citation: 82 S.W. 258
• Parties: LEE v. MUTUAL LIFE INS. CO. OF NEW YORK.
• Court: Kentucky Court of Appeals

82 S.W. 258

LEE v. MUTUAL LIFE INS. CO. OF NEW YORK.

Court of Appeals of Kentucky.

September 29, 1904

Appeal from Circuit Court, Grant County.

"Not to be officially reported."

Action by J. L. Lee against the Mutual Life Insurance Company of New York, in which Mrs. Jennie M. Skeggs intervened. From a judgment in favor of intervener, plaintiff appeals. Affirmed.

Montgomery & Lee, for appellant.

Clare Dickerson & Clayton and A. G. De Jamett, for appellee.

BURNAM C.J.

On the 20th of December, 1890, the Mutual Life Insurance Company of New York insured the life of Charles B. Skeggs for $1,000 the policy being known as a "twenty year distribution policy." Skeggs assumed to pay an annual premium of $42.20 on the 20th of December of each year. He paid this premium for five years. On the 24th of January, 1895, he borrowed from the Bank of Williamstown $200, for which he executed his note, with J. A. Lemon and J. L. Lee as sureties, and simultaneously assigned and transferred to Lemon and Lee as collateral to indemnify them against loss the above policy of insurance. Shortly after the execution of this note, Skeggs, having contracted tuberculosis, removed to Colorado. The note ran along until January, 1898, when the bank demanded its payment of the sureties. Skeggs' health had steadily grown worse, and Lee demanded that the insurance policy should be transferred to him in fee. On the 1st of February, 1898, C. B. Skeggs Jane M. Skeggs, the beneficiary and wife of C. B. Skeggs, and J. A. Leeman, signed the following writing, which was forwarded to them in Colorado by Lee:

"For one dollar to me in hand paid, and for other valuable consideration, the receipt of which is acknowledged, I hereby assign, transfer and set over to J. L. Lee, whose P. O. Address is Williamstown Ky. all my right title and interest in policy No. 441597, issued by the Mutual Life Insurance Company of New York, and for the consideration above expressed I do for myself, my executor and administrators, guarantee the validity and sufficient of the foregoing assignment to the above named assignee, their executors, administrators, and assigns, and their title to the said policy will forever warrant and defend.

"Dated Anaconda Colo. this 8th day of February 1898.

"C. B. Skeggs.

"Jennie M. Skeggs.

"J. A. Lemon."

Lee thereupon took up the obligation of Skeggs to the bank, and executed his own obligation in lieu thereof. He also paid the annual premium on the policy until the death of C. B. Skeggs in 1903. After the death of Skeggs he demanded payment of the policy, claiming to be the sole owner thereof under and by virtue of the assignment supra. This was denied by Jennie M Skeggs, who notified the company not to pay the insurance money to Lee. Lee thereupon brought this suit against the insurance company, asking a personal judgment for the full amount of the policy. Mrs. Skeggs was made a party to this proceeding on her own petition, and admitted that Lee was entitled to have repaid to him all the various sums of money, with interest thereon, which he had paid for her deceased husband; but denied that he...