The commercial. (Union City, Tenn.) 190?-193?, 1916-02-04
INSURANCE COMPANY MUST
LIVE UP To CONTRACT
Court of Appeals Decides Gases in
Favor of Policy Holders.

L
: That the Court of Civil Appeals
: of Tennessee believes that an insur.
ance company ought to live up to
its contract and that it should not
rely upon any probable ioophole to
Iabrogate its stipulated agreement
with the assured is evidenced by
three decisions handed down Satur-
lday.
In the case of the Sovereign Camp.
Woodmen of the World, VS.. Knola
Howard, Lake law, the court de-
cided in an opinion handed down
by Justice Moore that Mrs. Howard.
who was the beneficiary of a $1,000
policy contracted by her husband,
should receive the full amount of
the policy. The insurance company
claimed that it should not be made
to pay the amount set out in the
policy, because the deceased had
died of delirium tremens and had
been an habitual user of intoxicants.
1t appears that even after the in
surance company's agents knew that
Howard did use alcoholics to an ex-
cess it accepted his money in paw
ment of premiums. The insurance
company claims that it had a clause
in the policy which made payment
OF the $1,000 void if the holder of
the policy engaged in drinking
liquor to an excess. The lower
court gave Mrs. Howard a verdict
for the $1,000, $55 interest and
500 monument fund, and the Court
of Appeals put its stamp of approval
upon that action
Again in the case of the Pacific
Mutual Life Insurance Co. VS. VIM
Friedman by next friend, the appel
late court in a decision by Justice
Higgins affirmed the action of the
lower court in giving a verdict for
$1l2.5O on a sick benefit policy.
The insurance company claimed bv
way of defense that the holder of
the policy had violated one of the
clauses therein, but it appears that
the clause violated was in conflict
with the very first clause of the
policy. Judge Higgins gave a very
logical opinion in this case.
Again in the case of Edith Wal |
ton VS.. German Fire Insurance Co. |
of New York, Shelby law, the appel
late court in an opinion by Justice
Holmes reversed the suit and re-
manded it to the lower court for
another hearing. This was an ac-
ton to recover on a fire insurance
policy where goods had been de-
stroyed. The lower court felt that
the Walton woman had no cause of
action, but the appellate court de-
c1ded that she has and wants the
case tried in the lower court.
Only four of the Judges delivered
opinions Saturday. Judge S. F.
Wilson has gone to his home in
Nashville and Judge F. w. Moore
during his absence.
Following were the opinions de-
1vered by Judge Moore:
Claude Gardner VS.. Frank How
'rd ct ais, Weakley equity. Decree
II Chancellor is in all respects af
irmed. Question involved is wheth-
n parties had vested interest or
lass interests in property: Chan
ellor decided class interest and
Gardner appealed
o. Dulanie eft als VS.. Monroe Dan
els, Dyer law. Judgment of Circuit
,ourt affirmed. Suit involves col
ection of promissory note of S1.O46
With judgment against Dulanie ct
Is.
Sovereign Camp, w. o. W., VS..
Anola Howard, Lake law. Judg-
lent OF Circuit Court affirmed. Mrs.
toward sued to recover $1,000 on
fe insurance policy of husband who
led, $50 interest and $1OO monu-
lent fund. She was given judg-
lent in the lower court. :
George Dahnke ct ais. VS. Cbas
Dung, Obion County equity. De-
rec OF Chancellor is affirmed. In
lnction suit to restrain Young from =
ltt1ng timber on 1000 acres of =
md. Young demurred on the
rounds that he had contract to do =
}, and won in Chancery. -
Theodore Roosevelt, in sneecb Il