Milford chronicle., 1921-05-27
PRECEDENT SET BY
KENT COUNTY COURT
CASE STATED In TWO SUITS REGARD
ING INSURANCE AND IS The FIRST.
OF KIND KNOWN.
ATTRACTED MUCH INTEREST
ACTION Was BASED UPON One SHORT
CLAUSE In The POLICY ISSUED
TO The INSURED.

On Friday last an opinion was hand
ed down in the Superior Court of Ken
county in two cases of assumpsit
namely, James B. Rice VS.. The Home
Insurance Company and the case Of
Rice VS.. The Industrial Insurance
Company, to recover for. damages
done by fire at the Rice store in Dover
in 1920. The cases hinged on one
short clause as follows:-'It is agreed
between the insurer and insured that
the value of the insured property is
of the sum of -" In the case
stated the amount. was fixed at
$4,000.
The case is the first of its kind,
not only in the history of Delaware
but no cases have been found else
where in the country, making there
fore the opinion of the Court of Della
ware, the first of it's kind and a, pre-
cedent in such insurance cases.
The case has attracted more than
ordinary interest and in view of the
fact that the Delaware statute is diff
ferent than that of any other state
makes the case more important to the
legal fraternity and establishes a pre-
cedent for other States in future
cases.
The judges sitting in the case were
Chief Justice Penenwill and Judge
Boyce~ w. Watson Harrington and
James M. Satterfeld appeared for the
plaintiff, and Henry Ridgely, ArIey B.
Magee and. G. Ross Veasey (lIaryland
BARI for defendants. Both cases in
VolVed the same questions of law and
it was understood that the decision in
one should apply to the other case.
The cases were heard by the court on
an agreed statement of facts, a case
stated.
The court review the case and con-
cluded as follows:
"In our statute, as in the Nebraska I
law, it is first stated what shall be |
The measure of damages in case of
Total loss, viz: the amount of the in
surance written in the policy, and
hen follows in the Delaware statute,
1ut not in the Nebraska law, the pro-
7ision that in every policy on real
there shall be indorsed
lcross the face of it's value of the
agreed upon by the parties.
t is impossible for the court to see
ny sound reason for this agreed val
latiOn unless it is intended to furnish
he basis for settlement if there shall
e partial loss.
The statute not only requires that
he value of the property shall be
greed upon and indOrsed upon the
ol1cy, but that such estimate shall
e binding on both parties as to value. S
We construe this language to mean
nat, If any controversy shall arise S
etWeen the insurer and insured in
diving the value to be placed on the
roperty covered by The policy, the
greed value shall govern in ascer- n
lining the amount of loss. e
Many of the cases cited at the ar Il
lment on both sides were cases that j,
volved personal property. We are
ealing with insurance policies on a
al property, and with the construc- +,
On Of Delaware statute governing q
e same. For that reason we think 7
ost of the citations are hardly ap- +.
icable to the question before the
urt.
IF it should be thought the Con =
ruction the court has placed on our y
atute will work hardship upon in n n
rers, it may be said that the insur- =.
need not agree to a valuation of ~
e property insured that is far below .Jl Dt
real value. If there is an agree IL
snt we think the value agreed upon
lst govern in case of partial loss. W
Judgment will be entered in each ro
Sc in conformity with this opiaion 81
d the agreement in the case stat M
The court then made the following wi
Ter: ly
And now to wit: This goth day of er
y, A. D. 1921, the above and fore
ng case having been heard on a
Ie stated and having been fully ar
cd by counsel on both sides, the o-
lrt is of the opinion that the $4,000 SG, bi.
ted in the policy, as the agreed HIS H,is
ue Of the propery insured, is con- ~ "
ling as to the actual cash value of ~ ~
l property described in said policy M, ny
the time when the loss happened - -
provided by the reduced rate con- 90 90
'ution clause set forth in said pol - - -
It is, therefore, ordered, adjudged Gu
decreed that Judgment be enter
for the plaintiff in the sum of ST. SoN
80, being $1,223.25 with interest M llsal
reon from April, A. D. 1920, as az %Ji
agreed in said case stated; and ~ ~
It is further ordered, adjudged and Eis0 nie'
reed that the costs in this case be 9nI 99l,,
by the defendant and that the . ~ u
of $3.50 be allowed to the plaintiff e'',, eu
N attorney fee and that said sum III, III
axed as part of said costs in this WI WI
and be paid by the defendant" Ia, la
similar order was made in each IN IN.
the.