Powers v. Wilson

Decision Date08 February 1918
Docket NumberNo. 20686.,20686.
Citation139 Minn. 309,166 N.W. 401
PartiesPOWERS v. WILSON (GEORGIA CASUALTY CO., Garnishee).
CourtMinnesota Supreme Court

OPINION TEXT STARTS HERE

Appeal from District Court, Ramsey County; Charles C. Haupt, Judge.

Action by Mary Powers against Ole O. Wilson, Georgia Casualty Company, garnishee. Judgment for plaintiff against the garnishee, and it appeals. Affirmed.

Syllabus by the Court

Judgment having been entered against defendant upon a claim against which the casualty company had insured him under a policy substantially the same in effect as the policy considered in Patterson v. Adan, 119 Minn. 308, 138 N. W. 281,48 L. R. A. (N. S.) 184, the liability of the company upon its policy was subject to garnishment under the rule announced in that case and followed in subsequent cases.

As the policy required the casualty company to defend the action at its own expense and contained no provision requiring defendant to furnish a supersedeas bond in case of appeal and the company accepted and used a bond for costs, his failure to furnish a supersedeas bond did not release the company from liability.

The verdict was for $12,500; the policy for $5,000. An appeal was taken to this court without giving bond to stay proceedings. Thereafter plaintiff entered judgment and issued an execution under which she seized all of defendant's property. Defendant then made an agreement for settlement conditioned upon the company paying the amount of the policy. The company refused to pay and continued the litigation to a final conclusion. Held, that making this conditional agreement did not release the company as its rights were not affected thereby. Denegre & McDermott and Harry S. Stearns, all of St. Paul, for appellant.

John J. Kirby, of St. Paul, for respondent.

TAYLOR, C.

Plaintiff brought suit against defendant for injuries sustained in an automobile accident and recovered a verdict for $12,500. An appeal was taken to this court from an order denying a new trial, and the order was affirmed on condition that the verdict be reduced to the sum of $10,000. Powers v. Wilson, 165 N. W. 231. In her present brief plaintiff states that she accepted and complied with the condition. The Georgia Casualty Company had issued a policy to the defendant insuring him against such claims to the amount of $5,000, and when the suit was brought took charge of and conducted the defense under a provision in the policy which authorized it to do so. As the amount involved exceeded the liability of the company under its policy, defendant, at the suggestion of the attorneys for the company, employed another attorney to represent him personally. This attorney consulted and advised with the attorneys of the company during the litigation, but took no active part in its conduct or management. When the appeal was taken to this court defendant gave a bond for costs but no supersedeas bond was given. Thereupon plaintiff entered judgment upon the verdict and shortly thereafter garnisheed the casualty company. Upon the disclosure and the evidence taken in connection therewith, the district court rendered judgment against the casualty company as garnishee for the full amount for which it was liable under its policy, and from this judgment the casualty company has taken the present appeal.

The only question presented by the assignment of error is whether the disclosure and the evidence submitted in connection with it is sufficient to sustain the judgment.

[1] The company contends that it is not liable upon the policy for the reason that the policy provided that no action should be brought thereon until a final judgment had been rendered against defendant and had been actually paid by him. Although this provision in this policy differs somewhat from the provision considered in Patterson v. Adan, 119 Minn. 308, 138 N. W. 281,48...

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