The Seattle post-intelligencer. [volume] (Seattle, Wash. Terr. [Wash.]) 1888-1914, 1900-05-29
Insurance Go. Wins Famous Phin-
ney Case on Appeal.
REVERSED IN HIGHEST COURT.
Other Suits on Policies Written by
New York Corporation Must Also
Fall-Princely Sums mt stake-su-
preme Court of United states
Rules on Question of Policy Hold
ers' Right to Cancellation Notice.

A telegram received In this city yes
tspday states that the supreme court of
fhe United States has rendered a decision
in favor OF the appellant in four life
Insurance ceases, among them the famous
Phinney case, involving the right Of Mrs.
Guy G. Phinnev. of this city. to collect
frern the Mutual Life Insurance Company,
Of New York, the sum of 1862 for
policy issued to her husband, now de-
ceased The decision is regarded by law
yeys as being of more importance, not
only in Washington, but throughout the
United States, than any other involving
Me insurance rendered in recent years.
II is conservatively estimated that the
decision means to life insurance com
panies doing business in the United states
the saving of hundreds of thousands or
dollars annually. as the decision estab-
fishes n precedent and construction OF
the law directly contrary to the ruling
of all the subordinate federal courts.
During the past five years the cases which
were decided yesterday had stood as rec
ognized precedents by the courts through
out the country in similar litigation grow
ing out of a construction of the New
York statutes regulating the manner in
which life insurance contract might be
terminated.
The cases decided yesterday in favor of
the appellant, and the amounts involved.
were: Mutual Life Insurance Company
VS.. Phinney, s97.0l2; same company VS..
Hill. $24.0ss same company vs. Sears.
F,4is; same company vs.. Stewart. 5000
On September 30. 1890, Guy c. Phinney
took out a policy for 100000. made pay
able TO his estate. upon which he paid
the first annual premium of 1910. He
made no other payments On September
IL. 1893, the insured died, leaving two
annual premiums unpaid. In each Of
the other cases a number of annual pre-
IL, 4 10
psny at the time of the death of the hold
err The company contended In each
instance that the nonpayment of the
premiums had worked a forfeiture of the
policies. and that by neglecting to pay
the premiums or in some instances by
actual consent of the holder, the insu-
rance contract was terminated.
1t was claimed by the plaintiffs that a
policy once issued could not be terminal
ed In any way except by the notice re-
qulred by the laws of the state of New
York. which provided that until the sta
tutory notice has been given the policy
1emained In fun force and effect, regard
Less OF any lapse In the payment of pre-
riums This view was adopted by the
United States circuit court of this state,
and was also affirmed by the United
States circuit court of appeals at San
francisco, to which all the cases were
taken on wris of error
Tho Phinney case. having been decided
by the circuit court of appeals tech
the supreme court of the United States
for n writ OF certiorar The writ was
granted in the Phinney case and after
wards In the other cases. The former
case WAS argued in January, and kept
under advisement until the argument in
the other cases was had.
The full text of the decision OF the SUI
preme court IL not yet obtainable In Sc
attic. but we'll informed lawyers say
that II IL manifest that, in its ruling up
on the four cases, that court has adopt-
ed an entirely different view from that
taken by the circuit court and the circuit
court OF appeal
Several prominent Seattle attorneys in
discussing the decision yesterday. agreed
that, while the opinion of the supreme
court may not be decisive as to the ul-
Innate facts In such cases. 1t will, no
doubt, lay down general rules which will
be controlling In subsequent litigation of
similar character
John Il. Allen, of this city, and Julius
T. Davies, OF New York, appeared for the
appellant, and Harold Preston, of this
city, and s. Warburton. of Tacoma, for
the respondents, before the United States
supreme