Security Nat. Ins. Co. v. Crisp

• Citation: 364 S.W.2d 283
• Decision Date: 07 January 1963
• Docket Number: No. 7208,7208
• Parties: SECURITY NATIONAL INSURANCE COMPANY, Appellant, v. Blanche CRISP, Appellee.
• Court: Court of Appeals of Texas. Court of Civil Appeals of Texas

Page 283

364 S.W.2d 283

SECURITY NATIONAL INSURANCE COMPANY, Appellant, v. Blanche CRISP, Appellee.

No. 7208.

Court of Civil Appeals of Texas, Amarillo.

Jan. 7, 1963.

Rehearing Denied Feb. 4, 1963.

Gibson, Ochsner, Harlan, Kinney & Morris, Amarillo, for appellant.

R. S. Sutton, Amarillo, for appellee.

CHAPMAN, Justice.

This is an appeal by Security National Insurance Company from a judgment rendered by the court below for Blanche Crisp based upon a jury verdict in a suit filed to recover upon a fire insurance policy covering her household goods. This is a second appeal by the insurance company, we having reversed the case on October 9, 1961, because of failure to prove the amount of damages assessed by the court. That case is reported as Security National Insurance Company v. Crisp, Tex.Civ.App., 351 S.W.2d 262.

The appeal of the litigation involving the house in which the furniture, clothes, and household goods were located is reported as Anchor Casualty Company v. Crisp, Tex.Civ.App., 346 S.W.2d 364 (NWH).

The question of cancellation is before us again, as it was on the previous appeal. As we stated in the October 9, 1961 opinion, the policy here and the one in Anchor Casualty Company employ exactly the same language with respect to notice of cancellation and contain the 'giving' provision as distinguished from the 'mailing' provision with respect thereto.

It is the settled rule in Texas that where the contract provides the policy may be cancelled by 'giving' the insured notice, the conditions of the policy upon which rests the insurer's rights of cancellation must be strictly followed. Anchor Casualty Company v. Crisp, supra, and the cases there cited. Also Republic Ins. Co. v. Inverness Estates, Tex.Civ.App., 252 S.W.2d 251 (writ refused).

The evidence in this case shows a notice of cancellation was mailed months before the fire resulting in the loss and that such notice was not returned. Appellee testified she never received it.

A presumption prevails that a letter duly mailed will be duly delivered but such presumption is rebuttable. Republic Ins. Co. v. Inverness Estates, supra. The question of whether appellee received the notice was submitted to the jury and answered adversely to appellant. We are bound by that jury findings, so appellant's point contending that the evidence establishes as a matter of law that the policy sued upon was cancelled long before the time of the fire is without merit.

The fire occurred on November 8, 1959. Appellee pleaded that demand was made upon appellant by a letter dated February 1, 1960, which was well within the 91 days provided in the policy. The evidence is clear that demand was made and refused but for some reason appellee failed to prove it was within the period of 91 days provided for in the policy, which we believe would be fatal except for the fact of waiver. We believe the requirement was waived under Article 5546 Vernon's Ann.Texas Civ.St. and Rule 93, Sec. (m) Vernon's Ann.Texas Rules. However, rather than have that question in the case on another trial, we assume appellee will surely at that time make proof of demand and refusal and all other conditions precedent required in the policy. The case must be reversed again so we shall attempt to spell out what we believe to be the proper rules in trying it.

The record indicates to us it was tried on the theory of implied contract rather than an express contract such as we have in this case. The rules of pleading and proof in the two are entirely different. Black v. Nabarrette, Tex.Civ.App., 281 S.W 1087. Appellee contends under the case just cited it is unnecessary to plead any measure of damages. That is a correct statement where recovery is sought for destruction of chattels by fire under an implied contract. In the case last cited the evidence showed that the owner of two houses burned the houses himself. The tenants sued for recovery of loss of their household goods, which was, of course, under an implied contract as distinguished from an express contract represented by the insurance policy in the instant case.

It is without contradiction in this record that the policy of insurance was written by the company and accepted by appellee. It thus constituted a written contract between the parties and was binding on them unless there was some clause against public policy or was void for some other reason. As part of that written contract it was provided, 'Liability hereunder shall not exceed the actual cash value at the time of loss, ascertained with proper deduction for depreciation; nor shall it exceed the amount it would cost to * * * replace the property with material of like kind and quality within a reasonable time after the loss.'

We believe the case should be pleaded and tried in accordance with the contract of the parties as partly represented by the clause just above quoted, since that clause limited the extent of liability of the insurer. Instead, it was submitted and tried upon the theory of intrinsic value; i. e., the value to Blanche Crisp at the time and place of loss. A...