Schoenich v. American Insurance Company
| Decision Date | 07 January 1910 |
| Docket Number | 16,296 - (150) |
| Citation | 124 N.W. 5,109 Minn. 388 |
| Parties | AGNES SCHOENICH v. AMERICAN INSURANCE COMPANY and Others |
| Court | Minnesota Supreme Court |
Action in the district court for Winona county against six insurance companies to set aside an award made by referees which determined that plaintiff's loss by reason of a fire in the premises insured by the defendant companies amounted to $1,744.51 and no more, and to have the court determine the amount of loss and apportion it among the defendants.
The complaint alleged that plaintiff notified defendants immediately after the award that she was not willing to accept it and demanded a resubmission of the loss to other referees; that the written notice to defendants stated that the award was invalid, because the referee A. H. Mitchell was not a resident or citizen of Minnesota; that he had acted in like capacity as a referee within four months; that the referees gave plaintiff no notice of or opportunity to be present at their sittings; that the referees refused to consent to a reappraisal of the loss; that plaintiff repudiated the award as soon as she learned the facts; that for the reasons stated and that the award was grossly inadequate, the award was void. The separate answers set up the written agreement for submission of loss to referees that the three referees selected were wholly disinterested experienced and reputable contractors, and that prior to the award no objection on the ground of disqualification was made to either of said referees.
The case was tried before Snow, J., who made findings and ordered judgment in favor of plaintiff for the sum of $2,650. A motion for amended findings was denied. From an order denying defendants' joint and several motions for a new trial they appealed. Affirmed.
Insurance -- Referees Must Be Residents.
Section 1645, R.L. 1905, which provides that referees appointed to adjust losses under the Minnesota standard insurance policy must be residents of this state, is mandatory and jurisdictional, and a failure to comply therewith renders the award void. Whether this provision may be waived by accepting a referee with knowledge that he is a nonresident is not decided. The evidence sustains the finding that respondent had no knowledge that one of the referees selected by appellant was a nonresident.
Adjustment of Loss -- Hearing.
The referees selected to adjust a loss occurring under the Minnesota standard policy are not vested with absolute authority to make independent investigation and base their award on the result thereof, but are required to give interested parties reasonable opportunity to present evidence bearing on the case. The failure to grant such opportunity, unless waived, may vitiate the award.
M. H. Boutelle and N. H. Chase, for appellants.
Webber & Lees, for respondent.
This action was brought to vacate and set aside the award of the referees appointed to adjust a loss by fire, and to recover on the policies.
1. The trial court found that, an attempt to adjust the loss having failed, appellants demanded that the amount be ascertained by referees, according to the provisions in the Minnesota standard policy, and proposed to respondent three names from which to make a selection, and she chose Mr. James Leck. Respondent, in turn, submitted to appellants three names from which to make their selection and they named H. W. Seidlitz. These two were residents of Minnesota, and they selected as the third referee A. H. Mitchell, a resident of Wisconsin. Mr. Mitchell was selected without consulting with respondent, or anyone acting on her behalf, and without her consent, directly or indirectly, and she had no knowledge or notice of the fact of his nonresidence until after the making of the award. The court further found that she was not guilty of any negligence in not...
To continue reading
Request your trial