National Fire Insurance v. Crane

Tuck, J., delivered the opinion of this court. The policy, in this case, insured James L. Gray &■ Bro. against damage by fire to property in the city of Baltimore, “the loss, if any, payable to Wm. Crane & Co.” The present appellee — (he complainant below — claims relief as assignee of his partner’s interest in the policy, on the ground that it should have been issued in the name of Wm. Crane & Co., as the assured, and also that the renewal should have been made in their name, or that of Wm.

Crane & Son; the allegation being, that the company committed a mistake in these respects, which errors the complainant insists it is competent for a court of equity to correct, and to grant relief accordingly. An examination of the record has satisfied this court that the complainant is not entitled to relief on the supposition that such mistakes were committed. We think that the policy was issued and accepted, and that it was renewed, as the ²⁹³ parties concerned designed it should be; Wm. Crane & Co., being regarded by the Grays, as well as the company, as the persons beneficially interested in the property, and entitled to compensation in case of loss.

Without reviewing the evidence, we may say that the learned judge below has demonstrated this very clearly in his opinion. The question then arises, whether Wm. Crane & Co. were under any obligation to have obtained 'for. the Grays a transfer of the policy, assented to by the company, as in ordinary cases. ■ On this point we are of opinion with the court below, that they were entitled to the benefit of the insurance without such transfer. Courts of justice must regard all the parts of a transaction, and impute to parties a motive for doing or saying what the case discloses.

Every fact and declaration must be considered as the result of design, or agreement, and the intent of the parties should have effect, if it can be done consistently with established rules. Eaton vs. Jaques, 2 Doug., 460 ; Calvert vs. Bradley, 16 Howard, 593. Tested by this principle, what are we to suppose the company meant by issuing this policy, with the endorsement, that the loss, if any, should be paid to Wm. Crane 6c Co.?

It was an admission by it, that they had an interest in the contract, and were to receive the benefit of it. As observed by the judge below, the policy may be regarded as having been at its inception assigned to them with the assent of the company,” which doctrine was announced in the case of Brown vs. The Roger Williams Ins. Co., 5 Rhode Island, (2 Ames,) 394. An insurance was effected on property that was then mortgaged to the plaintiff in the suit — the policy having been issued to the mortgagors, “the loss, if any, payable to the plaintiff.” To an action by the mortgagee the company •pleaded that it, and the mortgagors, had referred to arbitrators the matter of the loss in question, that an award had been made, and this was relied on in bar of the suit.

On demurrer to this plea, it was held that the clause making the loss payable to the plaintiff, was, “in legal effect, an assignment of the policy, concurred in by the company, to the plaintiff as mortgagee, by virtue of which he alone was en> ²⁹⁴ titled to receive the amount of the loss, as additional collateral security for his debt,” and that “his interest in the policy required his assent to the adjustment of the loss, in order to make it binding upon him.” Concurring with the court below, as to this part of the case also, we think the complainant may maintain his suit, unless it can be defeated by the defences relied on by the company. We have no doubt of the competency of James L. Gray, and of A. F. Crane, to testify for the complainant. All their interest in the subject-matter was parted with. It makes no difference that Gray was examined a second time, after his release. “A release to qualify a witness must be given before the testimony is closed, or it comes too late.

But if the trial is not over the court will permit the witness to be re-examined, after he is released, and it will generally be sufficient to ask him if his testimony, already given, is true, the circumstances under which it has been given, going only to the credibility.” 1 Greenlf. Ev., 426. Wake vs. Lock, 5 C. & P., 454, (24 Eng. C. L. Rep., 402.) 7 Wend., 180 , Tallman vs. Dutcher.