132 Minn. 336 | Minn. | 1916
Appeal by the Maryland Casualty Company from a judgment against it as garnishee entered July 30, 1915.
The plaintiff brought an action against the defendants for personal injuries. A verdict was had in his favor on February 5, 1914. Defendant moved for a new trial, which motion was denied. From the order denying the motion plaintiff appealed to this court on May 14, 1914. No supersedeas bond was filed. On June 25, 1914, judgment was entered for the plaintiff for $11,602.25. Plaintiff garnished the Maryland Casualty Company which had executed its indemnity bond to the defendants.
If the defendants had not become bankrupt, the casualty company could have interposed in the garnishment proceeding an offset for premiums earned.on the policy on which its liability arose. Truan v. London Guarantee & Accident Co. 124 Minn. 339, 145 N. W. 26. Whether in the event of the bankruptcy of the defendants and their discharge the casualty company could offset against its liability accruing prior to bankruptcy a claim for premiums earned on the policy, or claims for other premiums or upon other causes of action against the defendants, all such claims accruing prior to bankruptcy, within the principle of Norfolk & W. Ry. Co. v. Graham, 145 Fed. 809, 76 C. C. A. 385, and Steinhardt v. National Park Bank, 120 N. Y. App. Div. 255, 105 N. Y. Supp. 23, we need not consider; for the liability of the casualty company did not accrue until after bankruptcy. The verdict in the personal injury case was returned after bankruptcy, though prior to the discharge, and judgment was entered after the discharge. It is clear enough that the company could not offset claims accruing prior to bankruptcy which were provable, against its liability which arose subsequent to bankruptcy.
Judgment affirmed.