Van Reen v. Aetna Life Ins Co.
Decision Date | 09 December 1913 |
Citation | 209 F. 691 |
Parties | VAN REEN v. AETNA LIFE INS. CO. |
Court | U.S. District Court — District of New Jersey |
Herbert H. Gibbs, of New York City, for complainant.
Collins & Corbin, of Jersey City, N.J., for defendant.
The bill in this case was filed by Jacob Van Reen, a judgment creditor of Charles Brogan, against the AEtna Life Insurance Company, for the specific performance, as claimed by Van Reen, of the provisions of an automobile liability policy issued by the insurance company to Brogan on or about April 8, 1910, in consideration of the payment by the latter of a premium of $99. While Brogan held the policy and it continued in full force Van Reen while traveling on a highway in New Jersey suffered serious accidental bodily injuries August 7 1910, through the negligent and careless use by Brogan of the automobile referred to in the policy. Van Reen brought an action in the Supreme Court of New York for damages for the injuries so received and recovered judgment against Brogan in the sum of $20,000 as damages, and $143.12 as costs of suit. Execution against Brogan was issued on the above judgment and returned unsatisfied prior to the commencement of this suit. The insurance company at its own cost undertook the defense of the New York action in the name and on behalf of Brogan from its commencement until and including the trial, and during the pendency of the action negotiated with Van Reen for a settlement of his claim, but did not pay or settle the same or any part of it. The insurance company was and is familiar with the proceedings in the New York action and had notice of the entry of judgment and the issuance and return of the execution and that such judgment is wholly unpaid. The policy in question provides, among other things, for the payment of the maximum sum of $5,000 in case of accident resulting in bodily injuries or death to only one person, and also all costs taxed against the assured in any legal proceeding defended by the insurance company, and also all interest accruing after the entry of judgment therein, computed on the amount of the insurance which shall have become payable under the provisions of the policy. Condition M of the policy sets forth the measure of the indemnity which should become due from the insurance company, as follows:
Conditions B and C are as follows:
'B. If suit is brought against the Assured to enforce a claim for damages covered by this policy he shall immediately forward to the Company every summons or other process as soon as the same shall have been served on him, and the Company will, at its own cost, defend such suit in the name of and on behalf of the Assured.
C. The Assured, whenever requested by the Company, shall aid in effecting settlements, securing information and evidence, the attendance of witnesses and in prosecuting appeals, but the Assured shall not voluntarily assume any liability or interfere in any negotiation for settlement, or in any legal proceeding, or incur any expense, or settle any claim, except at his own cost, without the written consent of the Company previously given except that the Assured may provide at the Company's expense such immediate surgical relief as is imperative at the time of the accident.'
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...harmonized with the general trend of authorities which seems to be distinctly the other way. 36 C. J. p. 1129, § 129; Van Reen v. Ætna Life Ins. Co. (D. C.) 209 F. 691; 8 Couch, Ency. Ins. Law, § 1982; Vol. 5, § 1175 (d); In re Harrington Motor Co., Ltd. (Eng. Ct. App.) 1928 I Ch. 105, 59 A......