True v. Citizens Fund Mutual Fire Insurance Co.
| Decision Date | 13 January 1933 |
| Docket Number | 29,229 |
| Citation | 246 N.W. 474,187 Minn. 636 |
| Parties | H. H. TRUE AND OTHERS v. CITIZENS FUND MUTUAL FIRE INSURANCE COMPANY |
| Court | Minnesota Supreme Court |
Action in the district court for Otter Tail county to recover the value of two checks drawn by defendant upon the Goodhue County National Bank payable to the order of plaintiffs and one A. J. Rick. The case was tried before Thompson, J. and a jury. At the close of the evidence the court directed a verdict for plaintiffs for $1,292, the full value of the checks and interest, and defendant appealed from an order denying its motion for a new trial. Affirmed.
Evidence -- admissions by assignor of fire insurance policies.
1. Admissions made by an insured after he had transferred to plaintiffs all of his interest in fire insurance policies covering certain property against loss by fire, are not admissible in evidence to establish the defense that the insured wilfully set fire to the property covered by the policies. Such evidence was properly excluded as hearsay, and as offending the rule that an assignor may not after the assignment disparage the title to the interests assigned.
Judgment -- judgment roll in criminal action -- admissibility in present action.
2. The judgment roll, entered upon the insured's plea of guilty to the charge of arson of the property insured, is not admissible in this action, to which the insured is not a party, to establish the defense pleaded, that he wilfully set fire to such property with a criminal purpose.
Orr Stark, Kidder & Freeman, for appellant.
Roger L. Dell, for respondents.
Defendant appeals from the order denying its motion for a new trial.
Plaintiffs sued defendant on two checks drawn by defendant upon Goodhue County National Bank payable to the order of plaintiffs and one A. J. Rick. One check was for $950 and one for $250, both dated November 10, 1930. The checks were indorsed by the payees and duly presented to the drawee bank for payment. Payment was refused because defendant had stopped payment. Thereupon the checks were protested for nonpayment and defendant notified thereof. The alleged defense was that the payee A. J. Rick owned a store building in which he carried on a meat market in the village of Otter Tail, Minnesota; and to protect himself against loss from fire defendant had issued and delivered to him its policies of insurance, one upon the building and one upon its contents. While such policies were in force on October 20, 1930, the insured building and property were destroyed by fire. The loss was adjusted, and pursuant thereto the checks were issued and delivered to plaintiffs and said A. J. Rick. As a defense it was alleged that A. J. Rick did intentionally and wilfully set the fire which destroyed the property, but that defendant did not acquire knowledge thereof until after delivery of the checks, and thereupon stopped payment. It is also alleged that an information was filed charging A. J. Rick with arson, to which he pleaded guilty and was sentenced on November 12, 1930. The reply denied that A. J. Rick had set fire to the property. At the close of the evidence the court directed a verdict for plaintiffs for the full amount of the checks.
The evidence shows without dispute that A. J. Rick held defendant's fire insurance policies upon the property destroyed by fire; that the loss was adjusted and that it was agreed that payment should be made therefor by the checks mentioned payable to the order of plaintiffs and A. J. Rick; that the checks were sent by the defendant to the State Bank of Perham for delivery to plaintiffs and A. J. Rick; that the last named bank so delivered them; whereupon plaintiffs and A. J. Rick indorsed and delivered the same to the last named bank for collection, which thereupon presented them for payment, but payment was refused, defendant having stopped payment. It also was proved or admitted that after the fire one of plaintiffs sued A. J. Rick and garnished defendant; that the litigation was settled on November 5, 1930, which settlement included the claims of the other two plaintiffs against A. J. Rick; that the settlement was reduced to writing signed by plaintiffs herein and A. J. Rick, whereby it was stipulated that of the adjusted insurance $620 should be paid to the plaintiff Farmers State Bank of Otter Tail, $290 to the plaintiff H. H. True, and $200 to the plaintiff C. J. Rick. That left A. J. Rick no interest whatever in the proceeds of the insurance loss adjusted at $1,200. Before trial there was a more formal transfer by A. J. Rick to plaintiffs. But we have no doubt that the written stipulation of November 5, 1930, was intended to and did transfer to plaintiffs all of A. J. Rick's right and title to the $1,200, the adjusted loss on the policies mentioned. For the convenience of defendant and as approval of the payment of the proceeds of the policies to plaintiffs, the checks were made payable to the order of plaintiffs and A. J. Rick.
The appeal challenges the rulings excluding admissions made by A J. Rick that h...
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