White v. Evans

• Decision Date: 27 September 1934
• Docket Number: No. 43.,43.
• Citation: 174 A. 731
• Parties: WHITE v. EVANS et al.
• Court: New Jersey Supreme Court

174 A. 731

WHITE

v. EVANS et al.

No. 43.

Court of Errors and Appeals of New Jersey.

Sept. 27, 1934.

Syllabus by the Court.

A policy of fire insurance was issued to an individual, covering real estate which he later conveyed through an intermediary to a corporation organized for that purpose and in which he held all the stock. The policy contained the usual clause voiding it in case of change of ownership without notice to and assent of the company. Held that such change was a substantial one and in violation of the policy whether at law or in equity, and that the company was no longer liable under the policy.

Appeal from Court of Chancery.

Suit by James C. White against William C. Evans and others, wherein the Farmers' Reliance Insurance Company of New Jersey was substituted as complainant. From an adverse decree (115 N. J. Eq. 177, 169 A. 812), the substituted complainant appeals.

Decree reversed with instructions.

James Mercer Davis, of Camden, for appellant.

Robert J. Tait Paul, of Camden, for respondent.

PARKER, Justice.

The essential facts are fully stated in the opinion of the Vice Chancellor, and need not be here repeated. The particulars in which the appellant company claims to be aggrieved by the decree below, as set out in the petition of appeal, are: (1) Dismissal of the bill as to defendant Joseph H. Evans; (2) the adjudication that defendants William C. Evans and W. C. Evans Company are entitled to a set-off against the mortgage held by complainant by assignment, and, under foreclosure in this suit, of $8,021.97, the amount of fire loss to real property under the policy issued by complainant to William C. Evans, as ascertained by the Vice Chancellor in this cause, with interest thereon. There is a third paragraph in the petition of appeal, but, in effect, it is only a repetition of the above.

1. So far as relates to dismissal of the bill as to Joseph H. Evans, we think the decree should be affirmed. Shortly stated, the point involved was this: William C. Evans held complainant's policy for $10,000 of which $1,500 was upon personal property not covered by the mortgage now held by complainant. He also held complainant's policy for $5,800 on personal property not covered by mortgage. All this personal property was destroyed by fire. The company refused to pay the loss, and Evans sued and recovered a judgment which was affirmed here. Evans v. Insurance Co., 110 N. J. Law, 159, 164 A. 258. This claim Evans assigned to his brother Joseph. The company claimed that this assignment was fraudulent and that William Evans was the real owner of the claim. The Vice Chancellor held the proofs did not show it fraudulent, and we concur in that view, and for the reasons stated by him.

2. As to the other branch of the appeal relating to the realty, the decree must be reversed. The Vice Chancellor, having found that a fire loss of $8,021.97 to the realty covered by the mortgage had been sustained, adjudged that, although the title to the real property had been transferred to the Evans corporation after the issue of the policy, without the assent of the insurance company and without notation of change of ownership as provided...