U.S. Fidelity & Guaranty Co. v. Kancer

• Decision Date: 29 February 1968
• Docket Number: No. 5653,5653
• Citation: U.S. Fidelity & Guaranty Co. v. Kancer, 238 A.2d 5, 108 N.H. 450 (N.H. 1968)
• Court: New Hampshire Supreme Court
• Parties: UNITED STATES FIDELITY & GUARANTY CO. v. Michael KANCER, Jr., a minor, Ruth Kancer, as mother and Next Friend of Michael Kancer, Jr., Michael Kancer, Sr., Henry C. Walker, Executor, u/w/o C. Duane Carlisle and Rockingham Gas Company.

Page 5

238 A.2d 5

108 N.H. 450

UNITED STATES FIDELITY & GUARANTY CO. v. Michael KANCER, Jr., a minor, Ruth Kancer, as mother and Next Friend of Michael Kancer, Jr., Michael Kancer, Sr., Henry C. Walker, Executor, u/w/o C. Duane Carlisle and Rockingham Gas Company.

No. 5653.

Supreme Court of New Hampshire.

Argued Oct. 4, 1967.

Decided Jan. 30, 1968.

Motion for Rehearing Denied Feb. 29, 1968.

Charles F. Hartnett II, Dover, for plaintiff United States Fidelity and Guaranty Co.

Wiggin, Nourie, Sundeen, Nassikas & Pingree, Manchester, John Nassikas, Manchester, for defendants Michael Kancer, Jr., Ruth Kancer, and Michael Kancer, Sr.

Burns, Bryant, Hinchey & Nadeau, Dover, Donald R. Bryant, Dover, orally and Scammon, Gage & Whitman, Exeter, Robert G. Whitman, Exeter, for Henry C. Walker, Executor u/w/o C. Duane Carlisle.

Flynn, Powell & McGuirk, Portsmouth, and Raymond P. Blanchard, New Market, for Rockingham Gas Co. GRIFFITH, Justice.

Petition for declaratory judgment seeking decree of non-liability of plaintiff under a policy issued by plaintiff to defendant Rockingham Gas Company and covering, within the limits of the policy, liability of defendant Rockingham Gas Company for claims arising from a gas explosion on September 18, 1963. The other remaining defendants have brought suit against the defendant Rockingham Gas Company for property damage, personal injuries and death caused by the explosion. The plaintiff alleged that it was not liable under the terms of its policy by reason of the failure of defendant Rockingham Gas Company to give notice of the accident in accordance with the terms of the policy. Trial by jury resulted in the following questions submitted by the Trial Court being answered as indicated:

(1) Did the Rockingham Gas Company, through Mr. Moisan, give to the United States Fidelity and Guaranty Company notice of the accident of September 18, 1963, as soon as practicable under the circumstances of the case? Answer No.

(2) Did the United States Fidelity and Guaranty Company waive its right to receive notice as soon as practicable? Answer Yes.

A third question submitted was not answered because of the answer to question (2).

Bills of exceptions were filed by all parties subsequent to the verdict and all questions of law raised were transferred by the Trial Court (Leahy, C.J.)

Numerous exceptions are before us from both the plaintiff and the defendants in their several bills of exceptions. The plaintiff argues that it was entitled to a decree in its favor on Question number (1) as a matter of law and the defendants likewise contend that they were.

The evidence in the case indicated that there was an explosion on September 18, 1963 apparently involving equipment of the defendant gas company, that Edgar Moisan, President of the defendant company, learned of the explosion almost immediately and checked the company equipment, conferred with the fire marshal, representatives of another insurance company involved, and generally assisted in arrangements for tests carried out to determine the origin of the fire.

The plaintiff received no notice of the accident until November 22, 1963, some nine weeks after the accident. The notice was given by Rockingham Gas Company after an insurance agent recommended to Moisan that a report should be made. While the evidence may not have required a finding for the plaintiff as in American Employers' Ins. Co. v. Sterling, 101 N.H. 434, 146 A.2d 265, the jury's finding for the plaintiff as a question of fact was clearly warranted by the evidence.

The jury by its answer to the second question found that the plaintiff had waived its right to deny liability because of late notice. The plaintiff argues that as a matter of law there was insufficient evidence to submit the question of waiver to the jury. The evidence warranted the jury finding that the plaintiff received notice of the claim on November 22, 1963 and denied coverage January 9, 1964. The accident was investigated by Mr. Paquette, the adjuster for the plaintiff, who knew of the late notice. The evidence warranted a finding that Paquette told Moisan on more than one occasion that the company would defend him to the limit of Rockingham Gas's monetary coverage; that the...