46 Ga. App. 471 | Ga. Ct. App. | 1933
Lead Opinion
E. W. Patisaul held a fire-insurance policy issued to him by American Insurance Company, covering personal property. On April 7, 1930, -with the policy in force, a fire loss occurred. E. L. Black filed suit against Patisaul in the city court of Dublin on April 23, 1930, and on April 26th summons of garnishment was served on the insurance company. At that time no proofs of loss had been made under the policy, nor were proofs ever made or waived by the company until November 1, 1930, on which date, on receipt of proofs, the company paid the fire loss. On May 20, 1930, the garnishee filed an answer denying indebtedness to Patisaul, and this answer was traversed on the same day. After the filing of proofs and payment of the fire loss, and on April 10, 1931, trial of the traverse was had in the city court of Dublin, upon an agreed statement of facts, and the trial court found against the traverse, thereby sustaining the answer of the garnishee. On certiorari the superior-court judge reversed this finding and entered up final judgment in favor of the plaintiff Black and against the garnishee American Insurance Company, for the amount of plaintiff’s judgment against Patisaul, and that judgment is before this court for review.
Counsel for both parties, in their agreed statement of facts upon which the case was tried, agree that “the issue now before the court is whether or not the garnishee was indebted to the defendant on April 26, 1930, which was the date of service of summons of gar
The policy in question contained this provision: “The sum for which this company is liable pursuant to this policy, shall be payable 60 days after due notice, ascertainment, estimate, and satisfactory proof of loss have been received by this company in accordance with the terms of the policy.” It also contains a provision that “no suit or action on this policy for the recovery of any claim shall be sustainable in any court of law or equity until after full compliance by insured with all the foregoing requirements, nor unless commenced within 12 months next after the fire.” Upon the
We agree with able counsel for plaintiff in error that a debt payable only upon a contingency would not authorize a judgment against the garnishee. For example, liability under the policy was contingent'upon the occurring of a fire loss; but we do not accept the view that the voluntary filing of proofs of loss by the insured (or by another in his behalf) is the act which creates the liability of the garnishee to the defendant; rather it is the proof of the liability that arose against the garnishee insurer when the fire occurred. A contingency is defined to be “A fortuitous event, which comes without design, foresight, or expectation.” Black’s Law Dictionary; 2 Words & Phrases, 1497. There is a broad distinction between a fortuitous or chance event and an event which is dependent and conditioned on an act which is within entire control of the party. The term “subject to garnishment” as used in § 5281 of the Civil Code refers to such fund as might be brought into subjection to garnishment, and hence applies only to demands resting in contract which the defendant could enforce in an action at law. Klipstein v. Alien-Miles Co., 136 Fed. 386.
The conclusion that the garnishee was indebted to the defendant at the time of service of the summons on April 26, 1930, is strongly supported by the fact that the insurance company paid the loss on November 1, 1930 (the same day it received the proofs of loss). The ruling made herein does not conflict, as contended, with the decision in the case of McKay v. Rowland, 20 Ga. App. 403 (93 S. E. 36), for in that case no indebtedness existed at the time the summons was served, nor did it even appear with any degree of certainty that it would ever exist.
The insurer, by the garnishment proceeding, will not, as contended by plaintiff in error, be deprived of the option, reserved by it in the policy, “to take all or any part of the articles at such ascertained or appraised value,” nor be deprived of the option to “repair, rebuild, or replace the property lost or damaged with other of like kind and quantity within a reasonable time on giving notice, within 30 days after the receipt'of the proof herein required, of defendant's intention to do so.” The policy involved covered personalty only, — drugs and sundries and such other merchandise, — and therefore provisions as to repairing and rebuilding are not involved. Had the insurer elected to replace the property, such replacement would have constituted “property and effects” owed by it to defendant, and whether the garnishee pays in money or merchandise makes
To review or even refer to all the numerous cases cited by opposing counsel and carefully considered by us would unduly prolong this opinion. We invite attention to the case of Finch v. Great American Insurance Co., 101 Conn. 332 (125 Atl. 628, 38 A. L. R. 1068), and cit. We base our ruling in this ease upon the view that the plaintiff, by service of summons of garnishment, obtained a lien upon such rights as the insured' possessed under his fire insurance policy at the time of such service. Subsequent payment by the company to the insured shows that such a right had then existed, and therefore the garnishee, when it filed its answer, was actually indebted to the defendant.
Judgment affirmed.
Dissenting Opinion
dissenting. In my opinion, where a loss, covered by a policy of fire insurance, has occurred, the interest of the insured is not subject to garnishment by a creditor of the insured at a time when proofs of loss have not been made as required by the provisions of the policy, and when there has been no waiver by the insurance company of its right to insist upon such provisions, and when there has been no absolute refusal by the company to pay. See, in this connection, Civil Code (1910), §§ 5271, 5272; Bates v. Forsyth, 69 Ga. 365 (1-b); Tim v. Franklin, 87 Ga. 93 (13 S. E. 259); Singer S. M. Co. v. Southern Grocery Co., 2 Ga. App. 545 (59 S. E. 473); McKay v. Rowland, 20 Ga. App. 403 (2) (supra). The decision in Callaway v. Globe Ins. Co., 25 Ga. App. 649 (104 S. E. 415), is not in conflict with the foregoing ruling, for in that case the insurance company had waived its right to insist upon the provisions of the policy. I think that the certiorari in the instant case should have been overruled.