Norris v. Johnson
Norris v. Johnson
Opinion of the Court
Since the passage of the Uniform Procedure Act, where a suit is filed in a superior court, which has general jurisdiction both in law and in equity, the petition should not be dismissed on general demurrer if it states a cause of action for either legal or equitable relief. Pardue Medicine Co. v. Pardue, 194 Ga. 516 (1) (22 S. E. 2d, 143).
“Equity will not enjoin the proceedings and processes of a court of law, unless there shall be some intervening equity or other proper defense of which the party, without fault on his part, can not avail himself at law.” Code, § 55-103. The defendant in a threatened foreclosure suit does not need the aid of a court of equity for the assertion of such defense as .that the purchaser has been damaged by the failure of the seller to have an insurance policy on the business transferred to the purchaser. Kanes v. Koutras, 203 Ga. 570 (47 S. E. 2d, 558), and cases cited.
Any right of the petitioners to set off the amount of the insurance policy against the balance due on the property would depend upon the validity of the agreement to transfer the policy; and under a fair construction this agreement amounted to an undertaking to have the insurance company transfer the policy. While, so far as appears from the allegations of the petition, the insurance company was under no obligation to transfer the policy, yet, if after a request so to do the company had refused to transfer it, this would be a matter of defense which might be asserted by the defendant.
Although Code § 20-309 provides that an impossible consideration is insufficient to sustain any promise, still it also provides that, if the expressed consideration be possible, though improbable, it is nevertheless valid. Accordingly, since the consideration to have the- insurance company transfer the policy was possible of fulfillment, it was sufficient consideration for the retention of the $75 advance payment.
Counsel for the defendant in error insist that the petition, which alleged that the defendant failed after repeated requests to transfer the policy, affirmatively showed that the petitioners could not rely upon the defendant to furnish such insurance coverage, and that the petitioners’ failure to obtain other insurance was the result of their own laches.
“Where by a breach of contract one is injured, he is bound to lessen the damages as far as is practicable by the use of ordinary care and diligence.” Code, § 20-1410. But the provisions of this Code section can be invoked only by way of defense, and it is not necessary that a petition negative failure of the plain
It follows that the petition set forth a cause of action for damages- by reason of the failure of the defendant to have the insurance policy on the business transferred to the petitioners, and the trial court erred in sustaining the defendant’s general grounds of demurrer, and in dismissing the action.
Judgment reversed.
Dissenting Opinion
dissenting. The petition alleges that for $75 the seller agreed to “transfer” an insurance policy covering the property in the amount of $4500; and it was contended that, since the property sold had been destroyed by fire and the seller had not transferred the insurance policy, the purchaser was entitled to have $4500, which was the amount of the policy credited upon the purchase money, and that, when this had been done, the purchase money would be paid in full; and upon this premise it was prayed that the purchase-money notes be declared paid and the deed to secure debt canceled.
The utter fallacy of the position of the petitioners lies in the fact that the premise upon which their position is based is fallacious, in that the seller did not undertake or obligate herself to secure the approval of the insurance company of a tranfser of the insurance coverage to the purchaser, but the limit of her undertaking and obligation, as stated by the petitioners, was merely to transfer the insurance policy. Immediately upon the alienation of the insured property by the seller, the insurance coverage automatically terminated as a matter of law. Code, § 56-825; Curtis v. Girard Fire &c. Ins. Co., 190 Ga. 854 (11 S. E. 2d, 3). If, upon a transfer of the policy, the purchaser had obtained the consent and approval of the insurers to continue the insurance, then the policy would have protected against the loss by the fire, but that was a matter wholly outside the obligation of the
Reference
- Full Case Name
- NORRIS Et Al. v. JOHNSON
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- 5 cases
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- Published