Court Opinion

ID: 9834481
Source: CourtListenerOpinion
Date Created: 2023-09-01 23:37:59.065769+00
Date Added: 2024-06-11T07:44:15.583517
License: Public Domain

On Motion for Rehearing.
Taking up the contentions of ap-pellees as set forth in the motion for rehearing, we respectfully say: (1, 2) The mere fact that appellees pleaded and introduced evidence 'to prove that appellant’s agent, at the time the insurance policy was issued, was informed by appellee, Claude Privitt, that the property was to be used for rental purposes and not by the owner, does not serve to make appellees’ allegations sufficient as a pleading on which a reformation of the policy could be had, in view of the fact that it is universally known that a tenant is a greater risk than an owner who occupies the premises, and .a greater premium is charged for insurance against loss by fire on buildings to be occupied by tenants, and nowhere did appellees tender, or offer to pay, the greater premium, or allege that they would have paid it had the policy been written as is contended for, and the correct premium charged.
The question, as we view it, is not one of waiver, or estoppel, but one of correct pleading.
(3) We do not understand appellees’ third contention. Our opinion does not take into consideration the provisions of the policy quoted by appellees.
(4) The contention that “the testimony shows that a tenant of the owner of the insured premises had been confined to the penitentiary three times and arrested and convicted of misdemeanors on liquor charges and had kept some liquor on the premises from time to time long prior to the issuance of the policy, and where the tenant had been searched on occasions by the law-enforcement authorities for whiskey, and where the policy provided that it shall be void ‘if the hazard shall be increased within the control or knowledge of the insured,’ and, ‘unless such breach or violation contributed to bring about the destruction of the property,’ then, in such event the burden was upon the insurer to plead and prove that such breach was within the control or knowledge of the insured and that such breach contributed to bring about the destruction of the property, and that the occupancy of such tenant did increase the hazard,” does not, in our opinion, fairly state the facts.
The tenant, referred to by appellees, is none other than Claude Privitt, shown in the policy to be a joint owner with his mother, and who seeks to reform the policy so as to have it recite that his mother is the sole owner of the premises and he the sole owner of the personal property on the premises — all of. which properties are insured in the same contract. And this tenant is, by the undisputed evidence, shown to be the agent of the mother and that he alone handled the matter of procuring insurance upon the property.
*298If, as seems to be contended for by ap-pellees, Claude Privitt is the tenant who was the occupant of the premises at the time of the fire, it occurs to us that the undisputed facts disclose that he was an undesirable tenant and exactly the kind and character of tenant whose occupancy as a matter of - fact increased the hazard insured against, and the judgment of the court is, in our opinion, contrary to the preponderance of the evidence.
(5) An inspection, of our. original opinion discloses that we did not hold that, because the insurer’s agent, on a few occasions, had represented the tenant (Claude Privitt) as his attorney in certain criminal cases, such agent was the agent of the insured in the procurement of the policy.
We definitely hold that the evidence does not disclose or establish that such agent colluded with Claude Privitt in the procurement of the insurance contract as written, and we furthermore hold that any finding, or implied finding, that the agent knew of the matters relied upon to reform the contract, is contrary to the preponderance of-the evidence.
(6, 7) We held in' our original opinion that appellees’ pleading was not sufficient to raise the issue of mutual mistake as to all of the matters relied upon for a reformation of the contract sued upon, and that the evidence was not sufficient to raise such issue of fact, and we adhere to that holding. St. Paul Fire & Marine Ins. Co. v. Culwell et al., Tex.Com.App., 62 S.W.2d 100.
(8) We did not deny a recovery for loss of personal property, under allegations and proof of actual cash, or replacement value thereof, but specifically held such recovery could be had.
(9) The pleading and proof does not show that the insurance adjuster compelled Claude Privitt to give him a statement at a time when Privitt was under the influence of intoxicating liquor and we did not hold that the statement made by Privitt was absolutely binding upon him, but we did hold that, such statement and the testimony of high officials and reputable citizens concerning the giving of the statement and of Privitt’s condition at the time, constitute a preponderance of the credible testimony covering the matters involved, and we reversed the judgment of the trial court because it was and is, in our opinion, contrary to the preponderance of the credible testimony.
(10) We hold that any statement concerning the material matters involved in this suit, made by Claude Privitt, is binding upon his mother, because the undisputed testimony establishes the fact of such agency.
The other three paragraphs of the motion for rehearing are fully covered by the original opinion, and these conclusions.
The motion for rehearing is overruled.