281 F. 952 | 8th Cir. | 1922
(after stating the facts as above). It has seemed necessary to a clear understanding of this case that many facts concerning it should be stated, and that the acts and writings of the parties and the course of the litigation should be portrayed, and this has been done in the foregoing statement.
This is not an action at law. It is a suit in equity. Lee Blakemore, Incorporated, the attorney in fact of each of the underwriters, first invoked the action of the court of equity below to relieve it and the underwriters from payment of the loss which Lewelling & Price-Williams sustained by the burning of the property described in the policy to the Box Company, on the ground that the defendants in that bill never made any insurance agreement with the underwriters or with Blakemore, Incorporated, and never were insured; and Blakemore, Incorporated, prayed that the policy to the Box Company and the insurance under it, which Lewelling & Price-Williams claimed, should be adjudged null and void and canceled. Subsequently Blakemore, Incorporated, and the Hettler Lumber Company, a corporation, and one of the underwriters, with leave of the court, filed a substituted complaint for the same relief on the same ground, and Lewelling & Price-Williams answered that complaint and filed a cross-bill under which they claimed and still claim that they were induced by the acts and statements of Blakemore, Incorporated, to believe that they were insured and to deposit $803.75 for such insurance by the underwriters against loss on the same property and on the same terms as the Box Company would have been insured if there had been no change of title or violation of any term of the policy issued to that company before May 31, 1918, when Blakemore, Incorporated, for the underwriters telegraphed that they were assigning the policy to Lewelling & Price-Williams. They also claimed that there was a meeting of minds and agreement of insurance of the nature just stated between Blakemore, Incorporated, attorney in fact for the underwriters, and Lewelling & Price-Williams, on May 31, 1918, when the telegram of that day was received and the Box Company’s check for the $803.75, the premium deposit, was sent to Blakemore, Incorporated, a check which.it received and collected.
The facts in support of the first claim of Lewelling & Price-Williams are not without persuasive force. They undoubtedly satisfied the court below that under them the equity of Lewelling & Price-Williams was superior to that of Lee Blakemore, Incorporated, attorney in fact for the underwriters, and to that of any of the underwriters.
Counsel for the appellants earnestly contend that the decree below should be reversed because Lewelling & Price-Williams never sub
“It is understood and agreed that there is assumed by each subscriber, including the assured hereunder, as if a separate policy was issued therefor, a sum which is the same proportion of the aggregate liability hereunder that each subscriber’s premium deposit bears to the aggregate of all the subscribers’ premium deposits under all policies in effect at the time of any loss.”
They complain that under this clause, whereby each subscriber, including the assured, assures his proportion of the loss, the amount specified in the decree should be diminished by the proportion of their loss which Lewelling & Price-Williams assumed. The contract so reads, and the decree should be modified by reducing the amount of the principal and interest specified therein by the proportion thereof that their premium deposit of $803.75 bears to the aggregate of all the underwriters’ premium deposits under all the policies in effect at the time of the loss.
There are other alleged errors and mistakes discussed. All of them have received deliberate consideration, but none of them has been found to be material and prejudicial to the appellants.
Let this case, therefore, be remanded to the court below, with directions to modify its decree by reducing the amount of the principal and interest specified therein by the proportion thereof that the premium deposit $803.75 of Lewelling & Price-Williams bears to the aggregate of all the underwriters’ premium deposits under all the policies in effect at the time of the loss of Lewelling & Price-Williams, and let the decree, so modified, be and it is affirmed, without costs in this court against any of the parties.
HOOK, Circuit Judge, participated in the hearing and conference and concurred in the decision of this case, but died before the opinion was prepared.