W. Riverside Coal Co. v. Md. Cas. Co.

• Citation: 135 N.W. 414,155 Iowa 161
• Parties: WEST RIVERSIDE COAL CO. v. MARYLAND CASUALTY CO.
• Decision Date: 02 April 1912
• Court: United States State Supreme Court of Iowa

155 Iowa 161

135 N.W. 414

WEST RIVERSIDE COAL CO.

v.MARYLAND CASUALTY CO.

Supreme Court of Iowa.

April 2, 1912.

Appeal from District Court, Polk County; W. H. McHenry, Judge.

The facts are stated in the opinion. Affirmed.Miller & Wallingford and Oliver H. Miller, for appellant.

John A. McCall and A. L. Steele, for appellee.

SHERWIN, J.

In 1905 the defendant issued to the plaintiff a policy of indemnity against “loss from the liability imposed by law upon the assured from damages on account of bodily injuries, or death, accidentally suffered while this policy is in force, by an employé or employés of the assured.” While this policy was in force, C. F. Brown, an employé of the plaintiff at its mine, was killed, and thereafter his administratrix brought suit against the plaintiff to recover damages for his death. In accordance with the terms of the policy, the plaintiff at once notified the defendant of the situation, and the defendant employed attorneys, and defended that action. A trial thereof resulted in a judgment in the district court against the West Riverside Coal Company. The Maryland Casualty Company caused an appeal to be taken, and requested the coal company to secure an appeal bond. In accordance with such request, the coal company arranged with Spring and Preston, who were stockholders in the company, to procure a bond, and Spring and Preston procured a bond from the Title Guaranty & Surety Company by depositing with said Title & Surety Company certain shares of stock owned by them. To secure Spring and Preston against loss on account of this bond, the coal company executed its note of $5,000 to them, and secured the same by a mortgage on its property. The judgment against the coal company was affirmed on appeal, and the Title Guaranty & Surety Company notified the coal company that it must be paid. Spring and Preston were then directed by the coal company to procure a loan for said company from one of the banks, offering as security therefor the coal company's note, and an assignment of current book accounts amounting to $8,000. The bank refused to make the loan upon the security of the accounts, and Spring and Preston then arranged with the bank to take the coal company's note for $4,247.80, the amount necessary to pay the judgment against the coal company, and to take as security for its payment the stock belonging to Spring and Preston that had theretofore been pledged to the Title Guaranty & Surety Company for the bond it furnished. And, to secure Spring and Preston against loss on account of the stock thus pledged to the bank, the coal company assigned to Spring and Preston its book accounts, amounting to over $8,000. The money thus procured from the bank was deposited to the credit of the West Riverside Coal Company, and said coal company then paid the judgment against it in favor of Brown's administratrix from said fund. This action was brought to recover on the policy the amount so paid. There was a directed verdict for the plaintiff and a judgment thereon from which the defendant appeals.

The controversy here centers around the appellant's contention that the plaintiff did not, in fact, pay the judgment, and hence has suffered no loss. It is urged with much persistence and ability that the judgment was in fact paid by Spring and Preston, and that they are the real parties seeking recovery from ...