State ex rel. Robertson v. Sevier
| Decision Date | 21 April 1938 |
| Docket Number | 35976 |
| Parties | State of Missouri at the relation of George A. S. Robertson, Superintendent of the Insurance Department of the State, Relator, v. Nike G. Sevier, Judge of the Circuit Court of Cole County |
| Court | Missouri Supreme Court |
Rehearing Granted, Reported at 342 Mo. 346 at 352.
Absolute rule in prohibition awarded.
Charles L. Henson and William H. Becker for relator.
The superintendent has received conflicting advice on this question. It is asserted on one hand, as alleged in the petition, that the rule announced by the Supreme Court of the United States in Northwestern Fuel Co. v. Brock, 139 U.S. 216, 11 S.Ct. 523, 35 L.Ed. 151, and similar cases, give the Circuit Court of Cole County, Missouri, authority to make orders incident to the return of this fund, and the payment of the expenses thereof. 15 C. J. 854, sec. 177; Texas Land Co. v. Sanders, 101 Tex. 616, 111 S.W. 648. On the other hand, he has been advised that the rule in these cases is not applicable, and that the opinion of this court in the American Constitution case, when properly construed, makes him the sole judge of matters involved in making restitution and requires that the cost of administration be paid out of the funds of his department or by appropriation of the Legislature.
Mayer Conkling & Sprague for respondent.
The inherent power of a court of equity to supervise trustees in the execution of their trusts is generally recognized. 65 C J. 676, sec. 538; Burnham v. Bennison, 236 N.W. 745; Headley v. Headley, 11 S.W.2d 23; Commercial Natl. Bank v. Alexander, 125 S.E. 384.
Relator seeks to prohibit the Circuit Court of Cole County from taking further cognizance, or from making any further orders whatever, in the case of The American Constitution Fire Assurance Company et al. v. George A. S. Robertson, Superintendent of the Insurance Department of the State of Missouri.
On December 30, 1929, all stock fire insurance companies transacting business in Missouri promulgated an increase of 16 2/3 per cent in fire and windstorm insurance rates in Missouri, notified the Superintendent of Insurance of the proposed increase in rates and requested his approval thereof. Thereafter, on May 28, 1930, the Superintendent of Insurance made an order refusing to approve the proposed increase. Seventy-four stock fire insurance companies brought a joint action in the Circuit Court of Cole County to review the order of the Superintendent of Insurance refusing to approve such proposed increase. That case was styled, The American Constitution Fire Assurance Company et al. v. R. E. O'Malley, Superintendent of the Insurance Department of the State of Missouri. Since the institution of that review action George A. S. Robertson succeeded R. E. O'Malley as Superintendent of Insurance and was substituted as respondent in said action in the place of said R. E. O'Malley. During the pendency of that action the companies collected from the policyholders the proposed increase in rates in violation of Section 5876, Revised Statutes 1929, which prohibits the collection of a proposed increase until after same has been duly approved by the Superintendent of Insurance. That section of the statute reads as follows:
"Special and specific notice and schedule of any increase in rates made by any bureau, insurance company or other insurer after February 23, 1915, and before this article takes effect, shall be filed with the superintendent of the insurance department immediately upon the taking effect of this article, and unless approved by him such increase shall hereafter be deemed unreasonable and unjustifiable and it shall be unlawful for any insurance company or other insurer to charge or collect such increased rate until after the same has been duly approved by the superintendent of the insurance department."
The amount collected from the proposed increase in violation of above statute was impounded in the registry of the circuit court. Thereupon that court appointed a custodian of said fund, a lawyer to advise said custodian, and authorized said custodian to employ a stenographer and necessary clerical help, and to purchase necessary stationery and supplies and to rent, furnish and equip a suitable place in which the work of the making and keeping the records and discharging the other duties imposed upon him from time to time by the court, incident to his duties as custodian, could be performed. For all of which the court allowed and ordered paid out of said fund the total sum of $ 133,411.14, the major part of which was paid to said custodian and his attorney.
In the companies' joint action to review the superintendent's order refusing to approve the proposed increase in rates the circuit court dismissed the companies' bill and adjudged that the impounded funds be disbursed among the policyholders lawfully entitled thereto, subject to such lawful claims, if any, as might be a lawful charge against such fund. The companies appealed from that judgment to this court. In disposing of that appeal we held that the circuit court did not have jurisdiction of the subject matter of the action, and that all orders made and judgments rendered by that court were null and void and of no effect except its judgment dismissing the cause and ordering the impounded funds returned to the policyholders, for the reasons stated in that opinion which we need not repeat here. [American Constitution Fire Insurance Co. et al. v. O'Malley, Superintendent of Insurance, 342 Mo. 139, 113 S.W.2d 795.] Our judgment in that case concluded in the following language:
When our mandate reached the circuit court the only thing that court did was to swap custodians. While its judgment entered on...
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