National Life Ins. Co. v. Allen

• Decision Date: 17 December 1874
• Citation: 116 Mass. 398
• Parties: National Life Insurance Company v. George D. Allen
• Court: United States State Supreme Judicial Court of Massachusetts Supreme Court

116 Mass. 398

National Life Insurance Company v. George D. Allen

Supreme Court of Massachusetts

December 17, 1874

Suffolk. Contract upon the following promissory note, signed by the defendant: "$ 422.83. Boston, May 31, 1869. Borrowed and received of J. T. Phelps, agent, four hundred and twenty-two and 83/100 dollars, which I promise to pay on demand, with interest."

At the trial in the Superior Court, before Brigham, C. J., without a jury, the following facts were found:

The plaintiff is a corporation in the State of Vermont, having in 1867, an office in Boston, where J. T. Phelps acted as its general agent in the business of life insurance. On December 31, 1867, the plaintiff issued to the defendant a policy of insurance on his life for $ 5000 for the term of ten years for an annual premium of $ 323.25. The defendant procured this policy to be issued through Phelps, and received it from him, to whom the defendant then paid the first year's premium. The note declared on was made and given to Phelps in consideration of premiums of insurance due from the defendant to the plaintiff, as provided by the policy issued to the defendant as aforesaid, and for interest on such premiums. The premiums then due, and interest, amounted, on May 31 1869, to $ 422.83; and Phelps had no property or interest therein, excepting in his character of general agent of the plaintiff in Boston.

Upon these facts, the judge ruled that the plaintiff could maintain this action, and found for the plaintiff. The defendant excepted to this ruling.

Exceptions overruled.

E. M Bigelow, for the defendant.

L. W. Howes & E. B. Smith, for the plaintiff.

Devens, J. Colt & Endicott, JJ., absent.

OPINION

Devens, J.

The note upon which this suit is brought is not in the usual form of promissory notes, but recites that, having borrowed and received the sum of $ 422.83 of J. T. Phelps, agent, the defendant promises to pay the same on demand, with interest. The facts found, the case having been tried by the Superior Court without a jury, showed that the whole consideration of this agreement moved from the plaintiff corporation, it having made a policy of insurance upon the life of the defendant, and this paper having been given by him for the balance of unpaid premiums, in which Phelps had no interest. It was a note to the possession of which the plaintiff was entitled, the whole beneficial interest being in it, and which it also had a right to collect. West Boylston Manufacturing Co. v. Searle, 15 Pick. 225, 230. But it is objected by the defendant that the note could only be collected by suit in the name of Phelps.

As a general rule, where a written agreement not under seal is made on behalf of a...