State v. Assurance Co. of America

• Decision Date: 28 June 1913
• Citation: 158 S.W. 640
• Parties: STATE ex rel. BARKER, Atty. Gen., v. ASSURANCE CO. OF AMERICA et al.
• Court: Missouri Supreme Court

158 S.W. 640

STATE ex rel. BARKER, Atty. Gen., v. ASSURANCE CO. OF AMERICA et al.

Supreme Court of Missouri.

June 28, 1913.

1. MONOPOLIES (§ 18)— FIRE INSURANCE — COMBINATION OF FOREIGN INSURANCE COMPANIES—ILLEGALITY.

Foreign insurance companies, authorized to do and actually doing business in the state, may not combine to suspend operation in the state and cancel policies written by them, because of an unwillingness to accept a statute radically changing the conditions of doing business, though each may individually of its own motion leave the state and cancel each policy it has in force therein, provided the policies contain a stipulation permitting cancellation.

2. MONOPOLIES (§ 18) — FIRE INSURANCE — REGULATIONS— STATUTES—VALIDITY.

Rev. St. 1909, §§ 10298-10338, prohibiting any trust to control the premium to be paid for insuring property against loss by fire, lightning, or storm, or to maintain the premiums when so fixed, applies to insurance companies in the state and is valid.

3. STATUTES (§ 157)—IMPLIED REPEAL.

A provision in a statute that all laws in conflict with it are repealed repels any conclusion that laws not in conflict are repealed, and laws not in conflict remain in full force.

4. MONOPOLIES (§ 10)—REGULATIONS—STATUTES —REPEAL.

The Legislature, in enacting Laws 1911, p. 267, regulating insurance against loss by fire, lightning, hail, windstorm, and sprinkler leakage and premiums thereon, did not intend to repeal the anti-trust laws of the state.

5. STATUTES (§ 110½)—TITLE—SUFFICIENCY.

Laws 1911, p. 267, entitled "An act to regulate insurance against loss or damage by fire, lightning, hail, windstorm and sprinkler leakage, and the rates of premium thereof, and to provide penalties for the violation of its provisions," if construed to repeal the anti-trust laws of the state, is invalid under Const. art. 4, § 28, providing that no bill shall contain more than one subject which shall be clearly expressed in its title, because the title does not call to the attention of the Legislature the subject of the anti-trust laws.

6. MONOPOLIES (§ 10) — FIRE INSURANCE — REGULATION—STATUTES—CONSTRUCTION.

The provision in Laws 1911, p. 269, § 4, authorizing any one or more fire insurance companies,

singly or jointly, to employ, for the making of a general basis of schedules and rates and the filing thereof, the services of experts, at most repeals only the clause in Rev. St. 1909, § 10301, which forbids agreements among insurance companies to fix the premiums to be paid for insuring property, and does not authorize companies to conspire to charge a fixed rate irrespective of the ruling of the Insurance Commissioner as to reasonableness of rates, and does not authorize foreign insurance companies, permitted to do and actually doing business in the state, to conspire to withdraw from the state or to limit the number of companies which will do business therein or to cancel insurance in force in the state.

7. INJUNCTION (§ 136)—FOREIGN CORPORATIONS— VIOLATION OF LAW—QUO WARRANTO —TEMPORARY INJUNCTION.

The court in quo warranto against foreign fire insurance companies, licensed to do and actually doing business in the state, to punish them for violating the anti-trust laws, has jurisdiction to issue a temporary injunction in aid of the proceedings to preserve the statu quo pending the proceedings.

Walker, J., dissenting, and Brown and Faris, JJ., dissenting in part.

In Banc. Quo warranto by the State, on the relation of John T. Barker, Attorney General, against the Assurance Company of America and others. Demurrer to information overruled, and temporary injunction granted.

This is an information, in the nature of a quo warranto, instituted in this court against the respondents, foreign fire insurance companies, duly authorized and licensed to do business in this state, to fine and otherwise punish them for violating the laws of the state regarding pools, trusts, conspiracies, and discriminations.

The information charges that:

"The Amazonia Fire Insurance Company and others * * * are fire insurance corporations organized under the laws of other states or foreign countries, and are doing a fire insurance business in the state of Missouri, and at all the dates hereinafter mentioned were duly organized to do such business in the state of Missouri, having heretofore complied with the laws of the state of Missouri authorizing foreign fire insurance corporations to do business in this state; and at all times hereinafter mentioned respondents were engaged in the business of writing fire insurance contracts, policies, and agreements insuring property from loss by fire or other causes, and conducting generally a fire insurance business throughout the state of Missouri; and that for many years respondents and each of them have been doing business in the state of Missouri with the consent of the state as foreign corporations and engaged in insuring property for the citizens and residents of Missouri against loss by fire and otherwise. That on the _____ day of April, 1913, each and all of respondents unlawfully, illegally, and willfully misused and abused their said franchises, rights, and privileges as foreign fire insurance companies authorized to do business under the laws of the state of Missouri in this, to wit: That on said date each of said respondents did create, enter into, become a member of, and participate in a certain pool, trust, agreement, combination, confederation, or understanding with each other and with other fire insurance corporations and associations of persons (whose names are unknown) against public policy and in restraint of trade, in this, to wit: That on said date each and all respondents unlawfully, illegally, and willfully entered into an agreement to suspend operation and withdraw from sale all fire insurance in the state of Missouri on the 30th day of April, 1913, and unlawfully agreed to refuse to accept, write, issue, or sell any insurance on any properties located in said state of Missouri, and unlawfully agreed to withdraw from said state of Missouri by concerted movement simultaneously on said 30th day of April, 1913, and thus leave the citizens of the state of Missouri without adequate fire insurance protection, and unlawfully agreed to cancel all fire insurance policies heretofore written in the state of Missouri, which said action on the part of said respondents, if carried out, as they now propose, will cause a calamity in the financial world in said state of Missouri and leave the citizens of said state without any adequate fire insurance.

"Your informant further informs the court that the said unlawful agreement, combination, confederation, and conspiracy will affect the trade, traffic, and commerce in this state, and that the same will be hindered, injured, and retarded, and the people of the state will, after said 30th day of April, 1913, be denied the right to purchase fire insurance and to protect themselves and their property against loss by fire.

"Your informant further informs the court that the general nature and object of the said combination, conspiracy, and confederation, so made as aforesaid, is to act in a concerted manner, simultaneously, and with a view to crippling and destroying the financial credit of the state of Missouri and the people therein, and to deny to the state of Missouri and the people therein the right to protect their property by insurance against loss or damage by fire, and such conspiracy, confederation, and agreement is against public policy, in restraint of trade, and is intended at one blow to crush the entire business and commerce of the commonwealth of the state of Missouri.

"Your informant further informs the court that respondents and each of them are associated together in a common organization or interest called the `Western Insurance Bureau,' which bureau is organized for the purpose of controlling the insurance business of the United States and particularly in Missouri, and for the further purpose of controlling, managing, regulating, and conducting the entire insurance business in the state of Missouri, and that respondents and each of them are members of such insurance organization and association, and, by the scheme of said association and respondents and each of them, such association is authorized and empowered to and does approve rules and regulations for the government of the entire association and all of the members thereof and of each and all of the respondents herein, and when said rules and regulations are so fixed, as they now are, each member and each respondent herein is called upon and required and compelled by the rules of said association and by the rules of the respondents herein to obey, and that said association and that each of respondents do obey such rules, and that when said respondents created, entered into, and became a member of and participated in such illegal agreement and combination and understanding with each other and with such association to suspend business and withdraw all fire insurance from sale in the state of Missouri, and to withdraw by such concerted action from such state, each of said respondents are required and commanded, by the rules and understanding between the said association and respondents and each of them, to comply therewith and to suspend operation in said state of Missouri and to withdraw therefrom and to withdraw from sale all fire insurance in said state, and such understanding, agreement, confederation, and combination is an abuse of the corporate privileges of each of said respondents and in violation of the laws of the state of Missouri, against public policy, and is in restraint of trade.

"Your informant further informs the court that there has been promulgated by said association and by each of respondents herein, and approved by such association and by each of respondents herein, rules for the control of the members thereof by which it is...