New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1899-10-04
PORTABLE WINS ITS CASE.
COURT OF APPEALS HANDS DOWN DE-
ClsION OF GREAT IMPORTANCE IL
INSURANCE. COMPANIES.

Albany Oct. 3.-A unanimous decision was manu-
a down IN the Court Of Appeals this afternoon ~
y. matter Of the appeal OF the Equitable Life AS
,,,.rca Society from an order and judgment OBJ
aimed BY Emil Greeff. the respondent IN the APP
Relate Division OF the Supreme Court IN the
,scond department. This decision. of great ih'
ls-ss. 10 the holders and OF great Importance 10
m ,onnanies engaged in the business Of insurine
ives was written by Justice Martin, his associ-
i,as concurring The appeal was argued at sara
oga Just before the summer recess "iiiiaii D.
lornb,ower and Charles B. Alexander appearing
Tor the Equitable Life and Dickinson ". RchaTds
or Smn Greeh.
The litigation arose from the fact that on July l.
So Emil Greet Of New-York. insured his life IN
ne EQUITABLE Life Assurance Society, In the sum
pf s2ocr. by a form Of policy styled an endow-
sent. having period Of fifteen years. 1t was an
annual dividend policy. on May 2, 1891 the pohcy
ratured and the society paid over TO the assured
he sum OF 10000 and dividends which accumu-
hted 10 the amount Of s. 49, Mr. Green was DIS
,stished with the settlement, claimed that the So
nety was holding back for Its own use poT-
ion OF its surplus. and sued ior d iui-
her dividend of s76S7 TO this complaint the
ociety deuurred setting forth that the painuH
id not state facts sufficient constitute cause
or action" Justice Joseph F. DAILY sustained the
lemurrer From his decision Mr.. Greef appealed
Q the Appellate Division Of the Supreme Court
Justices Woodward, Cullen and Hatch sustained
he appeal reversing the decision c. the trial Judge
IND Justice Goodrich Gissented ITom this decision
he Equitable appealed in June last and to-day
Justice Martin wrote the opinion.
The opinion is d somewhat voluminous document.
I Is clear and decisive. II confirms the opinion OF
gral Judge Dalv and literally quotes Justice Good
len IL The main the Court ho.ds that the pIaill,
Emil GTeeff cannot win on the equity slde OF lne
.ouri In consequence OF the fact that the Alto!-
icy General did not bring the action. as the stat
provide that all suits involving an accountlhg
must be brought by or with the approval OF tne
Attorney General and further that he cannot WIN
II law because FIRST. he is bound by the terms OF
lis policy and second by the statutes =,
Is opinion until d distribution was made by ti.s
Eeers or managers Of the DEFENDANT the pialh'lI
LAD no such title 10 any part OF the surplus "a
would enable him 10 maintain an action az Ia" 1VI
IS nooyery. We think the principle whlcn cgIi'IUas
no disposition Of surplus earnings OF a stock cor
2oraiion is applicable here. In these cases IL mas
rten been held that until dividends have been de-
Jared a stockhoder had night OF action az law
. recover any part Of the fund applicable Tor that
In sense an the funds in the possession OF
mutual Insurance company. over and above Its
immediate and present liabilities, may be regarded
: surplus, yet il Is not FOR that reason understood
Is belonging 10 or 20 be Immediately distributed
slols the policy holders. either by them or ny the
gnqaAy. The word surplus like the word 'habiI-
rs mas a special meaning which has arisen in
.9V.a be held by them not only for the protection
'her policy holders. but a. an inducement 10
lLe pubic 70 insure In the absence OF fraud al
-e acts OF Inc officers COncN i've.