Tateum v. Ross
| Decision Date | 02 January 1890 |
| Citation | 23 N.E. 230,150 Mass. 440 |
| Parties | TATEUM v. ROSS. |
| Court | United States State Supreme Judicial Court of Massachusetts Supreme Court |
F.A. Gaskill and C.W. Wood, for appellant.
W.S.B Hopkins, for appellee.
The rights of the parties in this case depend upon the meaning of the contract, a copy of which is annexed to the plaintiff's bill. The defendant contends that, under the contract, his right to the policy was absolute, and that he was entitled to all the proceeds of it, unless Thomas E Tateum in his life-time availed himself of his right to have it upon payment of the debt due the defendant, together with the premiums and the expenses of obtaining and continuing the insurance. The plaintiff, on the other hand, contends that the contract shows the existence of a debt, payment of which the policy was given to secure, and that the right of the defendant was simply to hold the policy, or the proceeds of it, as collateral security.
A careful examination of the contract sustains the contention of the plaintiff. If the theory of the defendant were correct, that his title was absolute, subject to the contingency that Tateum might pay the debt and have an assignment of the policy at any time during his life, on Tateum's failure to pay in his life-time, the defendant's title would become perfect, and he would retain the $5,000, while the debt would remain unpaid, and Tateum's estate would be liable to pay it. Such a result cannot be presumed to have been contemplated by the parties and a construction of the contract which would lead to it should not be adopted, unless the language requires it. The whole tenor of the writing is inconsistent with this view. The defendant is said to have effected the insurance "for the purpose of securing the payment of his said debt," and the $5,000 "is made payable to said Ross *** for the purpose of securing payment of said Ross' debt, as aforesaid, also to secure payment of all death assessments which may be paid by said Ross," etc. On payment of his debt and expenses the defendant agrees to assign "to said Tateum, or his legal representatives," using language applicable in case of a redemption of the insurance after Tateum's death; and he recognizes the existence of an interest in the insurance belonging to Tateum, separate from his own, when he uses the words "all his [Tateum's] interest in said insurance which I have, together with all my right, title,...
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