Willis-Reed Lumber Co. v. NEW YORK UNDERWRIT. INS. CO.
| Decision Date | 30 November 1956 |
| Docket Number | Civ. No. 396-400,402-404. |
| Citation | 146 F. Supp. 74 |
| Parties | WILLIS-REED LUMBER COMPANY, d/b/a Willis & Sons Lumber Company, a Corporation, Plaintiff, v. NEW YORK UNDERWRITERS INSURANCE COMPANY, Defendant (two cases). WILLIS-REED LUMBER COMPANY, d/b/a Willis & Sons Lumber Company, a Corporation, Plaintiff, v. SEABOARD FIRE & MARINE INSURANCE COMPANY, Defendant. WILLIS-REED LUMBER COMPANY, d/b/a Willis & Sons Lumber Company, a Corporation, Plaintiff, v. HOME INSURANCE COMPANY, Defendant (three cases). WILLIS-REED LUMBER COMPANY, an Arkansas Corporation with its Principal Place of Business Boone County, Arkansas, d/b/a Willis & Sons Lumber Company, Plaintiff, v. TRINITY UNIVERSAL INSURANCE COMPANY, Defendant. WILLIS-REED LUMBER COMPANY, an Arkansas Corporation with its Principal Place of Business Boone County, Arkansas, d/b/a Willis & Sons Lumber Company, Plaintiff, v. TRI-STATE INSURANCE COMPANY, Defendant. WILLIS-REED LUMBER COMPANY, an Arkansas Corporation with its Principal Place of Business Boone County, Arkansas, d/b/a Willis & Sons Lumber Company, Plaintiff, v. SPRINGFIELD FIRE AND MARINE INSURANCE COMPANY, Defendant. |
| Court | U.S. District Court — Western District of Arkansas |
Eugene W. Moore, Harrison, Ark., for plaintiff in Civ. Nos. 395-400.
Walker & Villines, Harrison, Ark., for plaintiff in Civ. Nos. 402-404.
Owens, McHaney, Lofton & McHaney, Little Rock, Ark., for defendants.
Findings of Fact
The plaintiff is an Arkansas corporation having its principal place of business in the Harrison Division of the Western District of Arkansas. Each of the defendants is a citizen and resident of a state other than the State of Arkansas. The amount in controversy, exclusive of interest and costs, exceeds the sum of $3,000.
The President and sole stockholder of the plaintiff company is Virgil D. Willis, an attorney at law. Plaintiff owned a large retail plant which contained its building supplies and finished lumber. Plaintiff also owned a lumber processing plant which contained machinery for processing rough lumber and for manufacturing various items of finished work used in construction. The two plants were located about 400 feet apart and were in the City of Harrison, Arkansas.
On the morning of April 22, 1956, the two plants, together with all of the stock, machinery, and equipment therein, were totally destroyed by fire. On that date plaintiff had in full force and effect the following insurance on the main retail building:
New York Underwriters $ 6,500.00
Seaboard Fire & Marine 3,500.00
New York Underwriters 3,000.00
Home Insurance Company 3,000.00
Home Insurance Company 12,500.00
Home Insurance Company 2,500.00
With regard to the inventory in the main retail building, plaintiff was insured in the sum of $8,766.13 with the defendant, Trinity Universal Insurance Company.
The processing plant, together with the machinery and stock of lumber therein, was insured as follows:
Tri-State Insurance Co. $4,875.00
Springfield Fire & Marine 3,000.00
The local countersigning agents for the defendant insurance companies were John Roy Campbell Insurance Agency (for Home Insurance Company); Claude Holt Insurance Agency (for Tri-State Insurance Co. and Springfield Fire & Marine Insurance Co.); United Insurance Agency, Jake Jacobson (for Trinity Universal Insurance Co., New York Underwriters, Seaboard Fire & Marine, and Home Insurance Co.).
Jake Jacobson, Manager of the United Insurance Agency, was present at the fire, which was on Sunday, and the next day, Monday, April 23, he notified the companies he represented of the fire, stating that it was a total loss. Likewise, Claude Holt and John Roy Campbell on April 23 reported the loss to the companies they represented, said reports being made in writing on forms furnished them by the companies. Each of them reported a total loss.
On the day of the fire, the loss was inspected by Neal Todd, adjuster for General Adjustment Bureau, and by Eddie Hahn, adjuster for Light Adjustment Company. On May 3, 1956, Frank Nunnally, who then represented the General Adjustment Bureau, and Eddie Hahn visited Mr. Willis at his office. Nunnally and Hahn represented all the insurance companies who had insured plaintiff's property. Mr. Willis offered his full cooperation. He gave Mr. Hahn a copy of proofs of loss which had been prepared on all items except the merchandise inventory in the main retail building. Mr. Hahn accepted the proofs of loss, but Mr. Nunnally did not accept a copy of said proofs of loss.
On the same day, May 3, 1956, Mr. Willis, by letter, gave written notice to each of the countersigning agents of the fire loss he had sustained.
Apparently no further contact was made between Willis and the defendants until May 24, 1956, when Mr. Willis wrote United Insurance Agency, as follows:
Enclosed with the letter was a verified proof of loss, describing the retail building and giving its value; and listing the equipment and accessories, inventory in the retail building, giving the values thereof.
On May 25, 1956, Willis wrote the John Roy Campbell Insurance Agency as follows:
Willis enclosed with the letter a verified proof of loss listing the items in the processing plant and giving the value of such items, as well as the building.
On May 25, 1956, Willis sent a similar letter and proof of loss to the Claude Holt Insurance Agency.
On June 7 and 8, 1956, Hahn and Nunnally again visited Willis in his office for the purpose of adjusting the loss. Nothing definite was accomplished, and on June 15, 1956, Willis wrote Nunnally and Hahn, giving them a history of the fire and subsequent events, and stating that "unless these losses are paid to me under the contract I shall enter suit against the companies immediately upon the expiration of the time in which you contracted to pay".
On June 21 the adjusters returned, and on June 22, 1956, Nunnally made Willis an offer to pay $34,231.60 on the main retail plant, said offer being $7,768.40 less than the total insurance on the building (which was $42,000). Nunnally also offered to pay $37,097.49 on the inventory in the main retail building; the total insurance on the processing plant building in the sum of $10,750; $8,983.10 on the machinery in the processing plant; $4,273.24 on the lumber inventory, said amount being one-half of the inventory. Willis refused to accept the offers on the main retail building, the inventory on the main retail building, and the lumber and machinery in the processing plant. Willis was willing to accept the offer on the processing plant building.
On June 25, 1956, plaintiff filed suits in the Boone County Circuit Court against the defendants, New York Underwriters Insurance Co., Seaboard Fire & Marine, and Home Insurance Co. These suits were based on the loss of the main retail building.
On June 27, 1956, Nunnally wrote Willis as follows:
On July 2, 1956, Willis replied to Nunnally's letter of June 27. Willis again gave the history of the fire and subsequent proceedings, and called attention to the fact that on June 25, 1956, he had filed complaints against some of the companies. Willis reiterated his willingness to furnish Nunnally any information that might be needed.
On July 9, 1956, plaintiff took a non-suit in the actions that he had filed on June 25, 1956. However, on July 13, 1956, the same suits were refiled in the Boone County Circuit Court. On August 1, 1956, Willis talked to Nunnally on the telephone and informed Nunnally that he would accept the offer on the inventory. However, Nunnally stated that his offer was a "package deal" and that he...
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