Opinion ID: 1951928
Heading Depth: 1
Heading Rank: 1

Heading: Claim One

Text: The alleged unlawful activity consisted of restrictions on trade contained in funeral policies and vault policies. Provisions from each type policy are quoted in the complaint, but there is no material difference except as to purpose, and only the contested paragraph in funeral policies is quoted here: `AUTHORIZED FUNERAL DIRECTORWe have authorized various funeral directors throughout Alabama to furnish the funeral benefit provided by this policy, and such benefit is to be furnished only by an authorized funeral director. As used in this policy Authorized Funeral Director means a funeral director authorized by us at the time of your death. Retail Value, as used in this policy, refers to the retail prices charged by authorized funeral directors. We will furnish you upon request the names and addresses of all authorized funeral directors.' The contention is that the policies should not be restricted to authorized dealers. This is required by statute. The Alabama Insurance Code, Acts of Alabama 1971, p. 709, and listed in the 1958 Recompilation as Tit. 28A, §§ 1-759, provides in Chapter 17, Burial Insurance Policies, as follows: § 393. Certain provisions required. No policy of burial insurance shall be delivered or issued for delivery in this state unless it contains in substance the provisions set forth in sections 394 through 405, or corresponding provisions which in the opinion of the commissioner are not less favorable in any respect to the policyholder. Any of such provisions or portions thereof not applicable to single premium policies shall to that extent be omitted therefrom. And § 398 provides in pertinent part: There shall be a provision [in the burial insurance policy] that the insurer has contracted with and appointed an authorized funeral director or monument dealer in this state to furnish the merchandise and services provided by the policy. The policy may also provide that the term `authorized funeral director' or `authorized monument dealer' shall mean a funeral director or monument dealer authorized by the insurer at the time of the insured's death. The contested paragraph in the policy quoted supra shows that it contains substantially the required provisions. The affidavit of William T. Graves, Vice President of Liberty National, states that policies containing the restraint of trade provisions were approved by the Commissioner of Insurance of Alabama. This was not denied or controverted by plaintiff's affidavit. The affidavit of Charles Healey, President of Brown-Service Funeral Homes Company, Inc., stated that the authorized funeral director required under the policy were those independent funeral directors throughout the State of Alabama with whom Brown-Service, a whollyowned subsidiary of Liberty National, has contracted to provide the services under such policies. This fact was not denied by plaintiff. There can be no legal claim for damages to the person or property of any one except as it follows from the breach of a legal duty. Pickett v. Matthews, 238 Ala. 542, 192 So. 261, and whatever damage results from doing that which is lawful does not lay the foundation of an action. Randle v. Payne, 39 Ala.App. 652, 107 So. 2d 907, cert. denied 268 Ala. 697, 107 So.2d 913. In Alabama Power Co. v. Alabama Electric Cooperative, 394 F.2d 672 (5th Cir.), cert. den. 393 U.S. 1000, 89 S.Ct. 488, 21 L.Ed.2d 465, the court stated that The Supreme Court has repeatedly held that, `where a restraint upon trade or monopolization is the result of valid governmental action, as opposed to private action, no violation of the [Sherman] Act can be made out. United States v. Rock Royal Co-op, 307 U.S. 533, 59 S.Ct. 993, 83 L.Ed. 1446, Parker v. Brown, 317 U.S. 341, 63 S.Ct. 307, 87 L.Ed. 315.' Eastern R. Conf. v. Noerr Motors, 1961, 365 U.S. 127, 136, 81 S.Ct. 523, 529, 5 L.Ed.2d 464. These decisions rest upon the fact that under our form of government the question whether a law of that kind should pass, or if passed be enforced, is the responsibility of the appropriate legislative or executive branch of government so long as the law itself does not violate some provision of the Constitution. Noerr Motors, supra. Here, defendant did no more than the statute required. There is no merit in Claim One.