— Action by appellee to recover upon a policy of fire insurance issued to him by appellant, insuring thereby a dwelling-house against loss by fire. The original complaint consisted of a single paragraph, but subsequently an additional paragraph, numbered two, was filed; and upon this latter paragraph it clearly appears that the action was tried and determined in the lower court, and the special finding based thereon. Consequently we dismiss, without consideration, the errors alleged by appellant in regard to the first paragraph, for, if sustained, under the circumstances, they would be harmless. Appellant, having unsuccessfully demurred for insufficiency of faсts to the second paragraph, filed an answer in two paragraphs; the first being the general denial, and the second setting up affirmative matter, to which the plaintiff replied. Upon the issues joined, the court, upon request, made a special finding of facts, and stated its conclusions of law thereon favorable to the plaintiff, and over the defendant’s exceptions thereto, and over its motion for a new trial, rendered judgment on the special finding, awarding the plaintiff the sum of $950 as damages, which the court found he had sustained as a result of the fire in dispute.
Counsel for appellant argue for a reversal (1) that the court erred in overruling the demurrer to the second para
Under the second paragraph of the complaint the plaintiff sought to recover upon the insurance policy for a loss sustained by him by reason of a fire destroying the insured property, and also sought to set aside a certain appraisement or award of damages made by appraisers selected by the parties under the provisions and conditions of the policy in suit. As preliminary, it may be said that the second paragraph of the complaint is not a model in its character as a pleading, and contains some general and bald averments. We have endeavored, however, to summarize the facts therein alleged, and the following may be said, in the main, to be the principal or material ones disclosed by the paragraph in question: The defendant is shown to be a corporation organized under the laws of the state of Pennsylvania, and is engaged in the business of fire insurance, having an office in the city of New Albany, Eloyd county, Indiana. On June 18, 1900, the plaintiff was the owner’ of a frame dwelling-house situated in said city, on the premises described in the complaint, which property the defendant on said day insured against loss by fire to the amount of $1,500, and duly executed to the plaintiff the fire insurance policy in suit, as the contract in respect to said insurance. This policy is filed with and made a part of the complaint. On Eebruary 23, 1901, while the policy was in full force and effect, the property so insured was partially destroyed by fire, and was thereby injured and damaged to the ¿mount of $1,200. The value of the house at the time of the fire is shown to be $3,500. Immediately after the loss sustained by the fire, the plaintiff notified the defendant of the facts, and all further proof in regard to the loss sustained appears to have been thereupon waived by the defendant. In fact, it is shown
It appears that immediately after the defendant received notice of the fire it sent its agent to New Albany to inspect and adjust the loss occasioned thereby, ‘ but that he and the plaintiff were unable to agree upon the damages sustained, and thereupon the defendant, by and through its said agent, demanded that, in compliance with the conditions or provisions of the policy herein above set out, the amount of the loss or damages sustained by plaintiff by reason of the fire be submitted to two competent and disinterested appraisers. Thereupon it was agreed between
One of the objections urged against the paragraph under consideration is that it fails to show that the plaintiff was the owner of the insured property- at the time it was damaged by the fire in question. That such fact of ownership is material to the plaintiff’s right of recovery on the insurance policy in suit is settled beyond controversy by many decisions of this court. Counsel for appellee, however, contend that the complaint sufficiently shows that the plaintiff was the owner of the property at the time it was injured by the fire, by the following statement or averment in said pleading, to wit: “This plaintiff says that after the loss and injury to his property insured by said policy as aforesaid.” (Our italics.) While the. failure of the pleader to show by positive and direct averments that the plaintiff was the owner of the building insured at the time it was damaged by the fire is justly open to criticism,
It is next insisted by counsel for appellant that under the facts in regard to the appraisement or award in controversy, the plaintiff is not entitled to have it set aside. In this contention, however, we can not concur. It will be observed that by the stipulations of the policy in suit it is, in effect, provided that if a disagreement arises in regard to the amount of loss, then, on thе request of either, party, the question in respect to damages sustained by reason of the fire shall be submitted to two competent and disinterested appraisers, who are to be sworn to decide impartially in the matter. If we accord to the facts which are well pleaded in the complaint their probative force, they certainly, to say the least, establish gross misconduct or misbehavior on the part of appellant, as well as on the part of the appraiser selected by it. In truth, it can be said that the facts disclose that the appraisement or award in controversy is so impxessed with unfairness, partiality, and injustice, so far as it cоncerns appellee, that in good conscience a court should not hesitate to set it aside as invalid. It clearly appears that appellant, by and through
In the appeal oí Bradshaw v. Agricultural Ins. Co., supra, the New York court of appeals held that the term “disinterested” does not simply mean an absence of pecuniary interests on the part of the appraiser, but requires that he be one not biased or prejudiced in the matter of the loss. See Brock v. Dwelling House Ins. Co.,
In Van Cortlandt v. Underhill,
In fact the authorities universally affirm that an award will he set aside not only for fraud or corruption alone, but also where it clearly appears that either one or more of the arbitrators or appraisers were influenced in their action by partiality and bias against the complaining party. Herrick v. Blair,
The facts disclosed by the second paragraph of the complaint, tested by the authorities to which we have referred, clearly establish that appellee is entitled to have the appraisement or award in question set aside, and to he awarded a recovery on the insurance policy in suit. Therefore the court did not err in overruling the demurrer to this paragraph of the complaint.
The facts as found by the court and set out in the special finding are along the lines of those stated in the complaint, and in the main they substantially sustain the latter. They disclose that Millikan, the appraiser, and Keller, the umpire, were not disinterested persons; that Milliken was the agent of appellant, and acted in the latter’s interest in
While it may he said that the evidence in the case does not justify or sustain the positive charge of fraud and corruption on the part of appellant or its agent, as alleged in the complaint, nevertheless, aside from the question of fraud or corruption there is evidence fully to support the material facts set out in the finding, and which alоne would justify setting aside the award in controversy. Appellee was not hound to establish all of the grounds upon which he, in his.pleading, based his right to set aside the award, for, if he established any one or more of such grounds or reasons which were sufficient for that purpose, he would he entitled to the relief demanded. „
We briefly outline some of the facts which there is evidence to prove: Barring the award or appraisement in.
Without a further summing up of the evidence, it may be said, in a word, that it appears that the award of damages in question is unjust and unfair. It is shown to be less than one-half of the actual loss sustained by appellee, and it certainly appears from the evidence that it was not fairly and honestly made. The reason why this agent of appellant so strenuously insisted on having Millikan, of Indianapolis — “my man,” as he designated him — -to serve as an appraiser in preference to some competent and disinterested person either residing in New Albany, a city of about 22,000 inhabitants, or in that vicinity, does not appear to have been satisfactorily explained upon the trial, on the part of appellant; and the lower court may possibly, under the circumstances, have
In the case of Catlett v. Dougherty, supra, the party in whose favor the award was given was shown to have made statements in the absence of the other to one of the arbitrators which was intended to influence his decision; it was held for that reason that the award was invalid and ought to be set aside.
In Robinson v. Shanks, supra, this court condemned as highly improper the fact that one of the parties to the arbitration therein involved during the progress thereof entertained one of the arbitrators at his own home and had another arbitrator to take a meal at a hotel at such party’s expense. This court in that case quoted with approval the following statement of Scholfield, J., in Catlett v. Dougherty, supra: “It is unimportant whether Sidell was, in point of fact, improperly influenced by the conduct of Dougherty, or not. It is sufficient to authorize the enjoining of the suit at law and the setting aside of the award, that James M. Dougherty — one of the real parties in interest — made a statement to him, in the absence of his adverse party to the arbitration, evidently designed
. As there is evidence fully to sustain the finding and judgment of the trial court in the case at bar, we can not disturb the result reached below on appellant’s claim of insufficiency of the evidence. We have examined all of the alleged errors urged by appellant’s counsel for a reversal, hut find that they are not sustained. The judgment is therefore affirmed, with five per cent, damages.
