The Butler weekly times. (Butler, Mo.) 1881-1918, 1898-10-06
4 sonpd, Common-sense Decision.

interest to the people Of Missouri
than the decision of Judge VIM. c.
/ Marshall in the Nickel insurance
case. In this decision Judge Mar
shall brushes aside the techDicalities
behind which Insurance companies
have so successfully evaied respon
gibility. and decides the case on
the bread principles of right, justice
and common sense.
In 1894 S. u Nickel, 6 Linn
county merchant, lost his stock OF
goods by fire. he carried a policy
in the Phoenix Insurance Company
of Brooklyn. The fire destroyed the
entire stock. A few days after the
disaster Nickel went to the local
agent Of the company who had taken
the risk, collected the premium, and,
in fact, transacted all the business
between Nickel and the company,
and asked for information as to how
to proceed in notifying the company
of the loss. The agent told Nickel
there was no necessity to make a
proof of loss; that the companys
adluster would De there in a few
days and settle with him. The
adiuster failing 20 CONS, Nickel
again spoke to the local agent and
was again assured that it would be
all right, and h. wrote letter to
the company, telling them of the
loss, and gave it to Nickel, who
mailed it Failing to hear from the
company Nickel finally employed an
attorney, who made out proof Of loss
in proper form and forwarded it to
the Chicago office, bat not until
after ,ne time specified IN the policy
for L" ice of loss had expired. The
comply refused to pay because the
proof, OF loss were not received
witnIe the 80 days specified in the
policy NlcArll brought suit for the
amount named in the policy. The
case went through the Circuit Court
and me Kaosas City Court OF APP
peal. aud was taken to the Supreme
Coura
Judge Marshall wrote the opinion
Of til Supreme Court.
Ia very fulj and elaborate opin.
ion be shows clearly that the powers
of the local agent are not limited TO
'-ffecting the insurance., counter
signing the policy, collecting the
premium, waving forfeitures, ex-
tending the time of payment of
premiums and like which occur prior
TO loss, but that such local age Mt
has the power TO represent the COM
pany after loss when the benefits for
which the assured has paid in the
shape of premiums are to flow from
the company to the assured, as we'll
rs before the loss when the premi-
ums flowed from the pockets of the
assured into the Golfers Of the insur
aces company"
Judge Marshall further held that
such local agent was a general
agent, aud not mere special agent !
having power 20 act only when the
company was to be benefited
In closing his opinion Judge Mar
snail says; IF insurance com panies
doubt the ability or honesty of their |
local agents to represent them after
loss, they should distinctly provide |
in their policies to whom ard whsre
the proofs OF less should be sent |
Courts ought not TO be asked 20 in
duIge prssumptioDs of want OF |
auth 9rity in said local agent to aid |.
the company IN technically avoiding /
after the rich harvest of |
years of premiums has been garner
ed and enjoyed The weight Ct
authority, Of analogy and Of justice
supports the authority Of such local
agent to waive proof of loss, either
IN writing or by parol, or by matters /
IN pals which amount 10 an estoppel" /
This case is the first one OF it, /
kind 50 reach the supreme court. /
Judge AIarshali's decision lays down /
a rule 50 just AMI fair that il cannot I
be uecessfully attacked or critic ze3.