Norwich Union Fire Ins. Soc. v. Citizens' Building & Loan Ass'n

• Decision Date: 01 June 1928
• Docket Number: (No. 3553.)
• Citation: 7 S.W.2d 144
• Parties: NORWICH UNION FIRE INS. SOC., Limited, v. CITIZENS' BUILDING & LOAN ASS'N.
• Court: Texas Court of Appeals

Page 144

7 S.W.2d 144

NORWICH UNION FIRE INS. SOC., Limited, v. CITIZENS' BUILDING & LOAN ASS'N.

(No. 3553.)

Court of Civil Appeals of Texas. Texarkana.

June 1, 1928.

Rehearing Denied June 7, 1928.

Appeal from District Court, Harrison County; P. O. Beard, Judge.

Action by the Citizens' Building & Loan Association against the Norwich Union Fire Insurance Society, Limited. Judgment for plaintiff, and defendant appeals. Affirmed.

April 15, 1926, J. C. Norris and his wife, Susie Norris, were indebted to the appellee, Citizens' Building & Loan Association, in the sum of $1,200, as was evidenced by their promissory note and a mortgage made to secure it on property hereinafter referred to. On the date mentioned, in compliance with stipulations in the note and mortgage, the Norrises had the appellant, Norwich Union Fire Insurance Society, Limited, to issue its policy insuring them in the sum of $1,600 for a period of 3 years from said April 15, 1926, against loss by fire of a dwelling house they owned. By a rider attached to the policy it was stipulated that the loss or damage, if any, on the house insured should be paid to appellee as mortgagee as its interest might appear. It was further stipulated in the rider that the policy, as to the interest therein of the mortgagee, should not be invalidated by any act or neglect of the owners of the property, if conditions specified, which need not be stated here, were complied with. The dwelling house covered by the policy was totally destroyed by fire November 2, 1926. At that date the amount of the note, principal and interest, was $1,205.53. The note was not then due, it seems, but was afterwards declared by the loan association to be due as authorized by stipulations in it. The amount was not paid within the time provided in the policy, nor ever thereafter, because, it seems, of a difference between the insurance society and loan association as to the amount the latter was entitled to demand and receive of the former; the insurance society contending it was liable only for $1,205.53, the amount of the note at the date of the fire, and 6 per cent. interest thereon thereafter, and the loan association insisting it was entitled to demand and receive the $1,205.53, interest thereon at the rate of 10 per cent. per annum, as stipulated for in the note and mortgage, and certain fines it assessed against the Norrises in accordance with its by-laws forming a part of the contract between it and the Norrises. Acceptance of a tender of the $1,205.53 and 6 per cent. interest thereon made by the insurance society May 16, 1927, was refused by the loan association; and...