The morning call., 1892-07-19
BROUGHT In TIME.
A Decision of Great Importance
TO Business Men.
The United stetes Circuit Court Of Appeals
Fire Insurance Policies.

A decision of great importance to fire.
insurance companies and their patrons was
rendered by the United States Circuit Court
of Appeals of the ninth circuit yesterday.
The point decided involves the cons ruction
of the clause in policies which provides that
no suit or action for the recovery of any
claim by virtue OF the policy shall be sus-
tainable in any court of law or chancery
unless "commenced within y months next
after the date of tile fire from which such
loss shall occur" Two quest lions were con-
sidered: % when does the y months
Limitation commence 10 rum" (2) as it
from the date of the fire or from the expira-
ton of 90 days after the proofs Of loss were
furnished? 2"
MODIFIED BY OTHER CLAUSES.
1t was held by the Circuit Court of Ap-
peals that policy of insurance which con-
tains conditions reducing the statutory time
for the commencement of any suit thereon
ought TO be construed TO mean y full
months exclusive of the time when suit
could not be brought, either by other clauses
or by any conduct IF the company prevent
ing the insured from bringing suit
The opinion was written by Judge Haw-
ley. Judge Gilbert coneu TTiRg ana Judge
McKenna dissenting. The cause was en-
titled James Steel, administrator IF The es
y
versus The Phoenix Insurance Company Of
Brooklyn, appellee.
HISTORY OF THE LTTIG ALTON.
An insurance of 5000 hal been effected
on the Clarendon Hotel, Portland. Or.
which was destroyed by fire on April II,
1884. There had been a chang Of receivers
Of the estate, which ultimately passed into
the hands Of the administrator. The in-
surance cOmpany'S agent had held out the
hope of an amlcable adjustment OF the loss.
which delayed Tie action Of the insured. A
suit was brought on July 10. 1885, l3 months
and q days after the fire. A demurrer was
sustained on the ground that the right of
action was barred by he Imitation clause.
An amended bill was FLED alleging conduct
on the part Of the company which, it was
claimed, amounted to waiver on the part
OF the Insurance company Of the limitation.
A demurrer to this amended bill was also
sustained and the suit dismissed.
From that decree an appeal was taken to
the Supreme Court of the United States,
and the decree was reversed upon the
ground that the allegations Of the amended
bill showed a waiver of the Limitation as 10
the time Of bringing the suit, The suit was
again tried, and the court held that the al
legations Of the amended bill were not sus-
tanned by the evidence, and dismissed the
suit. From this decree the present appeal
was taken.
No TRAPS FOR THE UNwARY.
In his opinion Judge Hawey holds that
the consistent and Logical view that ought
to BE- taken OF such policies Of insurance is
that tile fnll period OF the time mentioned
in the policy should be given freed from the
provisions u all other clauses OF the policy,
or from the conduct of the insurance COM
pany limiting or attempting 10 limit the
time actually given in the imitation clause.
1T is fail" he says, ito the Insurance
company and just to the insured. i would
prevent either party from taking any undue
or improper advantage of the other. The
unwaTy could not be led into a trap and
eaughl bg any MISREPRESENTATION or delusYe
promise. The right TO bring suit being
postponed in the clause of the policy for so
days after the proofs of loss were fur
nished, the y months limitation contained
In another clause does not commence to run
until the expiration of the 90 days. This
suit was, therefore, brought in time.
IN ACCORD WITH COMNON-sENsE.
THE construction we have given to this
policy is In accord with commons enSe-
which IS said TO be the soul and spirit of the
law. II is in unison with sound legal and
universally recognized interpretations of
written instruments as well as with the JUS
tee aud equity Of the case. II is correct in
principle and Is supported by the great
weight Of the authorities"
In substance the law as exp0unded By the
Circuit Court Of Appeals is that the time
during which the Insured could not sue
should not be counted as part of the year
HAAtttu VIII III lie 10 Ac4ul4cu 10 SUE III
other words, the parties cannot be pre-
sumed 10 have suspended the remedy and
provided during the same time for the run
ming Of the period Of Limitation.
POLICIES LITERALLY CONSTRUED.
Judge HaWiey further says IN the opinion
that as tile insurance company prepares the
contract and embOdles In Il such conditions
as it deems proper, it is in duty bound to
use language in the various provisions Of
the policy in such a manner that the in
sured cannot be mistaken or mlsled as to
the duties and burdens thereby imposed
upon him. He adds:
THE courts have uniformly held that the
various conditions Of policy of Insurance
must be strictly construed against the conf
pany and literally in favor of the insured.
This principle is applied to ali classes Of
Insurance policies, whether fire, life, acct
dent or other kinds
THE judgment Of the Circuit Court IS
reversed and the cause remanded, with di-
Tections 10 the court TO render a judgment
In favor Of the complainant as prayed for
IN the amended bill"