Americus times-recorder. [volume] (Americus, Ga.) 1891-current, 1916-03-30
STATUS Of EMPIRE
LIFE LITI GATI0N
IS TOLD IN FULL

ATLANTA, Ca, March 30.-After tWt
years of interference by litigation, tht
Hon. w. A. Wright, insurance con.
missioner of Georgia, has carried Out
his original plan for the pOlicyholders
of the Empire Life Insurance com
pany with the sanction of the supreme
court of Georgia, the latest phase o;
this litigation being unique in the an
nails of Georgia Jurisprudence. The
first chapters of the litigation consist
ed of an effort of the Georgia depart
ment to acquire control of the assets
of the Empire Life after suit for re
ownership had been filed. The depart
ment compromised the case of policy
holder who had brought suit through
the legal firm represented by Albert
Howell.
After the department acquired the
Empire Life assets through compro-
mise Mr.. Howell Unexpectedly renewed
bis litigious assault against the tot
tering Empire Life, and the whole sit
uation was plunged into tangle which
drew into the maelstrom many of the
more prominent firms of Atlanta law
yers.
Robert C. Aston, of Atlanta, was
engaged by the department as special
counsel The department then effected
reinsurance contract with the Inter-
national Life of st. Louis, after salts
flying itself that the latter company,
with 100000 of assets, $55, 100000 OF
outstanding insurance, and about ST.
600 of capital and surplus, is fully cap,
able of carrying out promptly all its
obligations and is skilfully managed.
This transaction was attacked in the
superior court of Fulton county. A
committee composed of a few policy
holders sought to re-establish the En-
pire Life as going concern. Judge
Ellis, presiding, considered that there
was no sufficient financial guarantee
behind the plan, and convinced that
the insurance commissioner, without
personal interest and employed by the
state of Georgia to protect the assets
and the policy-holders, had formed 4
logical plan of reinsurance, the court
ordered the contamination of the con-
tract. Attorney Howell, for his clients,
appealed, and Judge Elfis denied a
write of supersedeas. Mr. Howell then
went direct to the supreme court and
obtained a temporary writ of prohibi-
ition, this process never before being
resorted to in this state.
The supreme court ordered an nm
mediate hearing, and within four
days dismissed the writ of prohibition,
upheld the Georgia insurance depart
ment and Judge Ellis, allowing the re-
insurance to proceed without further
legal interference, and at the same
time creating a record for a prompt
dispatch of business in the state SD
preme court. There was large
gathering of lawyers at the hearing,
attracted by the novelty of the pro-
Iceedure.
The International Life already has
assumed the outstanding policies of the
Empire Life, and under the reinsur
ance agreement will pay future death
claims. The insurance commissioner
also required the International Life in
the trade to make offers for the rein
statement of lapsed policies and other
wise to exhibit proper regard for the
equities of all policyholders
There are about 10000 Empire Life
policies outstanding and lapsed in the
states of Georgia, Alabama and Flor
ida, perhaps $4,000 citizens of Georgia
alone being affected by the Georgia
supreme court opinion. Their inter
ests are protected by the supreme
court from the expense of further men
acing litigation, while the Interna
Itional Life Insurance company under
1 a.