New York Life Ins. Co. v. Marshall

• Decision Date: 25 January 1928
• Docket Number: No. 5159.,5159.
• Citation: 23 F.2d 225
• Parties: NEW YORK LIFE INS. CO. v. MARSHALL.
• Court: U.S. Court of Appeals — Fifth Circuit

23 F.2d 225 (1928)

NEW YORK LIFE INS. CO. v. MARSHALL.

No. 5159.

Circuit Court of Appeals, Fifth Circuit.

January 3, 1928.

Rehearing Denied January 25, 1928.

Richard B. Montgomery, of New Orleans, La., and B. D. Talley, of Bogalusa, La. (Richard B. Montgomery and Richard B. Montgomery, Jr., both of New Orleans, La., and Bascom D. Talley, of Bogalusa, La., on the brief), for appellant.

C. Ellis Ott, of Bogalusa, La., for appellee.

Before WALKER, BRYAN, and FOSTER, Circuit Judges.

WALKER, Circuit Judge.

The appellant issued two policies of insurance on the life of Frank A. Marshall, one dated July 1, 1926, the other dated July 27, 1926. Each of the policies was for the sum of $2,500, unless the death of the insured "resulted directly and independently of all other causes from bodily injury effected solely through external, violent, and accidental means, and occurred within 90 days after such injury," in which event the amount payable was $5,000, and each of the policies by its terms was incontestable after two years from its date. The last dated policy was issued in pursuance of a supplemental application, whereby the applicant reiterated and confirmed all the agreements, statements, representations, and answers contained in his original application, and warranted and declared that no change in his health or insurability had occurred since the date of his original application. The insured died on November 17, 1926.

After the appellee, the beneficiary in each of the policies and a citizen of Louisiana, had brought suit in a state court on the first issued policy for the sum of $2,500, the appellant, a New York corporation, filed in the court below the bill in equity in this cause. That bill contained allegations to the following effect: The appellant was induced to issue each of the policies by false answers of the insured to questions asked him as to his health and as to his consulting a physician or physicians, which answers were warranted to be true. The insured died from a disease which he had previous to his application to appellant for insurance. Before said bill was filed, appellant tendered to appellee the amount of premiums paid on said policies, and demanded the surrender of the policies. The tender and demand were refused. The bill contained prayers that appellee be enjoined from prosecuting the above-mentioned suit, brought by her on one of said policies, and that appellant have a decree in its favor rescinding and canceling said policies and ordering the return of them to the appellant. The appeal is from a decree sustaining a motion of the appellee that said bill be dismissed.

As to the policy which was sued on in the state court before the bill was filed, the appellant has an adequate remedy at law by setting up in defense of that action defenses based on the alleged falsity of statements and representations relied on by the appellant in issuing that policy. Insurance Co. v. Bailey, 13 Wall. 616, 20 L. Ed. 501; New York Life Insurance Co. v. McCarthy, 22 F. (2d) 241 (Circuit Court of Appeals, Fifth Circuit, present term). As to the last issued policy, the averments of the bill do not show that any claim of the appellant for more than $2,500 is asserted or apprehended; the existence of a claim under that policy of more than that sum being negatived by the allegation that the death of the insured was due to disease, and by the absence of allegations indicating that a claim by the appellee that the death of the insured was due to accident as defined in the policy, with the result of making the double indemnity payable, was...