Page v. Utah Home Fire Ins. Co.

• Decision Date: 09 April 1964
• Docket Number: No. 9902,9902
• Citation: 15 Utah 2d 257,391 P.2d 290
• Parties: d 257 Meredith PAGE, Plaintiff and Appellant, v. UTAH HOME FIRE INSURANCE COMPANY, a Utah corporation, Defendant and Respondent.
• Court: Utah Supreme Court

Page 290

391 P.2d 290

15 Utah 2d 257

Meredith PAGE, Plaintiff and Appellant, v. UTAH HOME FIRE INSURANCE COMPANY, a Utah corporation Defendant and Respondent.

No. 9902.

Supreme Court of Utah.

April 9, 1964.

Dahl & Sagers, Midvale, for appellant.

Lawrence L. Summerhays, Salt Lake City, for respondent.

McDONOUGH, Justice:

Plaintiff sued to recover under two fire insurance policies issued by the defendant, one for $20,000 and one for $10,000 on a fourplex building owned by plaintiff, which was destroyed by fire.

The case was submitted to the jury on these special interrogatories:

'1. What was the actual cash value of the burned fourplex just before it was destroyed by fire?

'Answer: $10,000.

'2. Did plaintiff Meredith Page knowingly fail to make a full and honest disclosure to defendant Fire Insurance Company of the material facts regarding the nature and intended use of the burned fourplex?

'Answer: Yes.'

On the basis of the jury's findings, the court entered judgment denying plaintiff recovery on either policy. But it later entered an order granting plaintiff's motion for a new trial. Upon a reconsideration of that order, the court stated that he thought that the issues as to the two policies should have been submitted to the jury separately. He then reinstated the judgment against the plaintiff as to the first policy (the $20,000 one). But as to the second policy (the $10,000 one) he ordered a new trial on the single issue posed by interrogatory No. 2 above set forth.

The plaintiff appealed from the judgment against him on the first policy (the $20,000 one); whereas the defendant seeks to sustain it; and the defendant cross-appealed, seeking reinstatement of the judgment against the plaintiff on the second policy (the $10,000 one).

Inasmuch as the jury found against the plaintiff, that he did not make a full disclosure of material facts to the defendant, wherever there is conflict in the evidence on that issue, the defendant is entitled to have us review it in the light most favorable to that finding.

Plaintiff Page purchased the building in question from the U. S. Government in December, 1958, for approximately $1,800. It was a substantial building which had been used as an Air Force Officers' Quarters at the Salt Lake Air Base. It was the plaintiff's purpose to, and he in fact did, move the building about 20 miles to the southern part of Salt Lake County and placed it on property at 14610 South State Street, just south of Utah State Prison.

Plaintiff Page had been an agent for the defendant Utah Home Fire Insurance Company for over 30 years, and worked through Heber J. Grant & Company, a general agent for the defendant. Shortly after he purchased the building, Mr. Page discussed with Mr. O. C. Inkley, Secretary of that Company, the matter of taking out fire insurance on it. He gave the information as to its size, construction and condition; that the plumbing, heating and lighting were in; that he intended to move the building; and that it would need some minor repairs. But the defendant's evidence is that Mr. Page did not disclose to Mr. Inkley these facts: that the building would have to be cut in several pieces to be moved; that the internal wiring, plumbing and heating lines would be cut; that many of the windows and some of the walls were damaged; and that the building would remain vacant for some time.

There can be no doubt but that these facts would increase the fire risk. The Company relied on Mr. Page's representations as to the condition and location of the building and did not send anyone else out to inspect it. On December 31, 1958, it issued a fire insurance policy for $20,000 showing the location of the building to be at 14610 South State Street. The policy was signed by the plaintiff, Meredith Page, as agent. The building was severed and in four or five pieces was moved to that location in April, 1959. Some time after it was set up there and some superficial repairing done on it, Mr. Page, by telephone, ordered an additional policy on it in the amount of $10,000. Pursuant to this order, the second policy (the $10,000 one) was issued on June 27, 1960, also signed by the plaintiff Meredith Page as agent. It was about eight months later, on February 11, 1961, that the building was destroyed by fire.

We are not impressed with the plaintiff's contention that the issue of fraud and failure to disclose was improperly allowed in the case because it was done after the pretrial conference and order. Three weeks before trial the court granted defendant's motion to amend the order to include the issue whether plaintiff violated his fiduciary duty. Plaintiff had ample opportunity to meet the issue, and that is all that is required. ¹ Nor do we find merit in the charge that the court erred in submitting the special interrogatories instead of a general verdict, as requested by the plaintiff. This procedure is sanctioned by our rules. ²

The plaintiff also contends that the second interrogatory concerning whether Mr. Page knowingly failed 'to make a full and honest disclosure of material facts' is vague and uncertain in that they jury would not have understood what the material facts were. Upon our survey of the trial and of the respective contentions of the parties, it is our opinion that jurors of ordinary intelligence, which they are presumed to be, would have had no difficulty in understanding what was meant...