Court Opinion

ID: 9570823
Source: CourtListenerOpinion
Date Created: 2023-08-21 20:26:43.383064+00
Date Added: 2024-06-11T12:18:28.930501
License: Public Domain

Evans, Judge,
dissenting.
The majority opinion declares no insurance coverage was afforded as to the house destroyed by fire, because of an incorrect street number. I respectfully dissent.
1. The incorrect number was placed in the policy by the insurer’s agent; the insured gave the agent the correct description of the location of the house. The agent had no excuse whatever for placing the wrong description in the policy.
2. No policy or copy of policy was ever given to the insured prior to the loss by fire; and he had no opportunity of correcting the mistake in description.
3. The incorrect number was immaterial. The house was located at the corner of Briscoe Street and Cannon Street in Covington; and was the only house the insured owned in the City of Covington.
4. The verdict for plaintiff should be affirmed; a reversal and a directed verdict for the insurance company should not be rendered in this case.
*451In September, 1967, Charlie Susie Bell purchased the house in question, and gave a security deed thereon to Bank of Mansfield in Newton County. Byron Davis, a resident of Newton County, was the Executive Vice-President of the Bank of Mansfield, and was also agent for Fireman’s Fund Insurance Company. He caused his company to issue a fire insurance policy on the house, described as a "frame house, approved roof, one family dwelling, located at corner of Briscoe Street and Cannon Street, Covington, Georgia. ”
This court takes judicial notice that the population of the City of Covington, according to the U. S. census for 1970 was 10, 267 persons. See Tift v. Bush, 209 Ga. 769, 771 (75 SE2d 805). Davis was quite familiar with this location, as he had owned this particular house at one time, and testified it was located at the corner of Briscoe and Cannon Streets in the City of Covington, just as described in the policy.
The bank foreclosed its lien and the property was purchased by Owen Price. Davis retired from the banking and insurance business and was succeeded by M. O. Campbell, who became cashier of the bank and an insurance broker. Campbell requested Steele-Prescott Agency, of Covington, to renew the fire insurance policy on the aforementioned house. Owen Price left the obtaining of insurance to Campbell and the Bank of Mansfield, as the bank was carrying a loan on the property. Both Campbell and Steele-Prescott Agency acted as agents of the insurer, and the commission for writing the policy was divided between them.
An error in the description of the insured house was made by Hugh Steele, partner in the Steele-Prescott Agency, not participated in by any other person except Steele and his secretary. Campbell placed in Steele’s hands the existing policy on the house while owned by Charlie Susie Bell, which contained the following description: "On the frame, approved roof, one family dwelling located corner of Briscoe St. and Cannon St., Covington, Georgia.” (Tr. p. 308) In the upper left hand corner the words "Charlie Susie Bell” were marked through. Immediately under the description there appeared in pen the numerals "4109” placed there by *452Steele’s secretary. Below the description of the house, in pen, were written these words: "Please renew one year name of Owen Price.” Hugh Steele knew the described house was at a corner of two streets, and he testified: "It was a request to write an insurance policy in the name of Owen Price at 4109, at the corner of these streets. ”(Tr. p. 35). Mr. Steele’s secretary, who was Mrs. Dorothy Gassaway, testified that she put the numerals "4109” on the old policy, and further that she marked through the words ". . . corner of Briscoe Street and” (Tr. p. 238). Of course, with the numerals "4109” which Mrs. Gassaway had added, and with the striking through of the above words, the description was thus changed to read: "4109 Cannon Street.” Therefore, this error in description, in its entirety, is chargeable to Steele, the insurer’s agent, and his secretary, without any participation whatever therein by Owen Price, the owner of the insured house.
Steele seemed to entertain some doubts as to the correct description of the house, so he drove to the corner of Briscoe and Cannon Streets and located a house with the number "4109” near the corner. This house was not at the corner of Briscoe Street and Cannon Street, but was separated by a vacant lot from the corner. He did not knock upon a single door of any house to make inquiry as to the correct location and description of the house formerly owned by Charlie Susie Bell, now owned by Owen Price. He took a photograph of the house at 4109 Cannon Street and departed without making any further investigation whatever.
Virginia Mutual Insurance Company issued its policy, mailed the original to Bank of Mansfield and mailed a copy to Owen Price at 4109 Cannon Street, but which latter copy was never received by Owen Price. This was not his correct address.
No check or investigation was made by Campbell or Bank of Mansfield for accuracy as to the description of the property, and the policy remained in the bank’s file. Mr. Campbell was thereafter killed in a bank robbery; and the house burned about a year after issuance of the policy. Price made a claim on the insurance company for payment, and it refused to pay upon the ground that the house described in the insurance policy — No. 4109 *453Cannon Street — was not owned by Owen Price.
So far as this record shows, neither Charlie Susie Bell nor Owen Price had ever owned a house in the City of Covington except the house Charlie Susie Bell conveyed to Bank of Mansfield by security deed; and had insured against loss by fire; and which was at the corner of Briscoe and Cannon Streets; which was the same house that Owen Price bought at the aforementioned foreclosure sale; and requested Campbell and Bank of Mansfield to have insured for him. The frame, one-family dwelling, with approved roof, was located at the corner of Briscoe Street and Cannon Street, until the house was burned.
A jury rendered a verdict for the plaintiff, and a majority of this court is now saying that a directed verdict should have been granted to the insurance company. All of the evidence, including all inferences arising from the evidence, must be construed most favorably toward the party opposing the motion for directed verdict, to wit, the plaintiff in this case. See Curry v. Roberson, 87 Ga. App. 785 (75 SE2d 282); Whitlock v. Michael, 208 Ga. 229 (65 SE2d 797).
Two facts stand out in this case, to wit: 1. The house in question was easily located, it being the only house ever owned by Charlie Susie Bell, and later by Owen Price, in Covington, and it was at the corner of Briscoe and Cannon Streets in the City of Covington. An incorrect number made no difference whatever.
2. The mistake in description was made by the insurance company through its agents, and was made before the policy was issued. Owen Price did nothing to mislead the insurance company or its agents. The law which suggests that parties ought to read their policies of insurance in order to be apprised of coverage, has no application here because neither the policy nor a copy was ever in Owen Price’s possession. The bank, represented by the insurance broker as its executive vice-president, retained the original in its files, and it was contended that a copy was mailed to Owen Price, but the transcript here shows that Owen Price never received the copy. It would have been strange if he had received it, as it was mailed to 4109 Cannon Street, which was not his *454correct address.
There are times when an insurance company is not held responsible for the representations and mistakes of its agents. But this is as to those representations or misrepresentations made after the policy has been issued. An insurance company is responsible for a mistake or misrepresentation made by its agent before and at time of the issuance of the policy. See Rhodes v. Mutual Benefit Health &c. Assn., 56 Ga. App. 728 (2) (194 SE 33); National Life &c. Ins. Co. v. Cantrell, 49 Ga. App. 368 (1) (175 SE 543); Metropolitan Life Ins. Co. v. Hale, 177 Ga. 632, 634 (170 SE 875).
When an insurance company issues a policy, and at the time of issuance its agent who procures the policy, knows certain facts regarding the risk, after loss, the insurance company is estopped to set up as a defense any fact that its agent knew in advance of or at time of issuance of the policy of insurance. Commercial Union Assurance Co. v. Lyon & Kelly, 17 Ga. App. 441 (1) (87 SE 761); Phenix Ins. Co. v. Searles, 100 Ga. 97 (1, 2) (27 SE 779); Johnson v. Aetna Ins. Co., 123 Ga. 404 (51 SE 339). See also Rome Ins. Co. v. Thomas, 11 Ga. App. 539 (3) (75 SE 894): "As to all matters affecting conditions precedent to a contract of insurance, the knowledge of the agent of the insurance company is imputed to the company, and the company is thereby charged with notice of any facts, affecting the risk about to be assumed, which may have come to or rest in the knowledge of its agent, and which good faith in the discharge of his duty as agent would require him to disclose to his principal.” Springfield Fire &c. Co. v. Price, 132 Ga. 687 (1) (64 SE 1074): "Where a policy of fire insurance contained a stipulation that it should be void if the subject of insurance be a building on ground not owned by the insured in fee simple, but, at the time the application for insurance was made, the company, through its agent, knew that the applicant did not own the land on which the building sought to be insured was situated, the company, in defending an action on the policy, will be estopped from setting up the noncompliance of the insured with this condition of the policy.”
The mere incorrect numbering on a house, which is *455otherwise sufficiently described, or where a key to the correct description is afforded, will not render the description insufficient. See Copeland v. Carpenter, 206 Ga. 822-823 (2) (59 SE2d 245): "This court has many times held that, if the descriptive averments of a deed furnish a key by which the land can be definitely located or identified by the aid of extrinsic evidence, the evidence is sufficient to pass title.” Also see Harmon v. First National Bank of Columbus, 50 Ga. App. 3 (1) (176 SE 833): "A deed which contains an inconsistent description of the property intended to be conveyed will not for that reason be declared void, if the mistaken or erroneous description is such that it can be disregarded and the property identified or sufficiently designated, or if the means of correcting the mistake is furnished from the same deed or other competent evidence.
"(a) A conveyance will not be defeated because of a description therein which is inapplicable or false if the premises intended to be conveyed clearly appear from any part of it, or can be shown from extraneous evidence. ” (Emphasis supplied.) All ambiguities in an insurance policy must be resolved against the insurance company. The policy here, solely through the mistake of the insurance company’s agent, contained an ambiguity. The house was said to be owned by Owen Price, and it was said to be at 4109 Cannon Street. This is the only house Owen Price owned in Covington, and the ownership of Owen Price is just as much a descriptive term as to the house as is the incorrect numbering. This ambiguity must be resolved against the insurer.
I respectfully dissent from the majority opinion, which would overturn the verdict of the jury, and order a directed verdict for the defendant insurance company. It would be a travesty on justice to allow the insurance company to escape its legal liability in this case.
I am authorized to state that Judges Deen, Stolz and Webb concur in this dissent.