Maryland Casualty Co. v. Laurel Oil & Fertilizer Co.
Maryland Casualty Co. v. Laurel Oil & Fertilizer Co.
Opinion of the Court
delivered the opinion of the court.
The Laurel Oil & Fertilizer Company manufactures cottonseed oil and meal in Laurel, Miss., and maintains agencies for the buying and selling of its products in other places. Among the places at which it maintains an agency is Rassfield, in Jefferson Davis county, Miss., where, in 1914, it operated a cotton gin and seld hulls, cottonseed meal, and phosphates, and exchanged such products for cottonseed, and ginned and wrapped cotton for hire.
The defendants demurred to the declaration, which demurrer was overruled, and pleaded the general issue and numerous special pleas. Among the special pleas filed the third alleged that the application for the bond for Cook contained a question to explain fully the duties of the said employee, and that the answer to this question was “Agent for the purchase of seed and handling our products ; ’ ’ and that the insurance company had no knowledge of the defendant’s managing a gin or operating a gin in addition to the duties described in the application. To this plea it was replied that the operation of the gin was a mere incident to occupy the time of Cook while acting as agent and handling the plaintiff’s products at Bassfield, and only required a small portion of his time. The fourth plea alleged that the contract of indemnity contained a warranty providing that “the employer shall, if so required by the company and at the cost and expense of the company, use all diligence in prosecuting any employee guilty of an act entailing liability upon the company under this bond, civilly or criminally as may be allowed under the existing laws, and give all information at its disposal and all the assistance in its power to bring the employee to justice, and to aid the company in any suit brought by the company to obtain reimbursement from the employee or his estate, or any one else in the premises, for moneys which the company may have paid or become liable to pay by virtue of this bond,” and that the Casualty Company made written request of the Laurel Oil & Fertilizer Company to prosecute at the cost and expense of the casualty company the said Cook for any act of larceny 'or
We think there was error in granting this peremptory instruction, because, if Cook’s testimony was true, a shortage did not come about by any act of larceny or embezzlement on the part of Cook.
The court also committed error in excluding certain testimony offered by witness Cook, stating that he had not embezzled or stolen any of the property.
We think it was error to sustain the demurrer to the plea of defendant that the Oil & Fertilizer Company refused to file an information and prosecute Cook, though requested in writing by the Casualty Company to do so. Jt is not contrary to the public policy of this state for a citizen to make an affidavit charging another citizen with crime who is guilty thereof. It is rather the public policy of this state to have crime prosecuted, and each citizen of the state has a right to make an affidavit of any offense against the public law coming to his knowledge. It certainly is not contrary to public policy to prosecute criminals, and it is a reasonable contract where one party is insuring against acts constituting larceny or embezzlement to stipulate that the assured shall give information and institute prosecutions, where required to do so, of all offenses on the part of the employee insured against.
We do not deem it necessary in this case to pass upon the question whether it was lawful for the Laurel Oil & Fertilizer Company to operate a gin after the passage of
For the errors indicated, the judgment will be reversed, and the cause remanded.
Reversed and remanded.
Reference
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- 1. Insurance. Actions. Question for jury. Peremptory instruction. In an action by an employer against a casualty company on -it's policy to indemnify such employer for all loss of money, etc., constituting larceny or embezzlement by an employee, it was improper for the court to grant, a peremptory instruction for the employer, where the employee gave testimony which if true showed that the shortage in his accounts did not come about by any act of larceny or embezzlement on his part. 2. Same. In such case it was improper for the court to exclude testimony offered by the employee showing that he had not embezzled or stolen any of his employer’s money or property. 3. Indemnity Insurance. Requirement that insured prosecute. It is a reasonable contract where one party is insuring against acts constituting larceny or embezzlement to stipulate that the assured shall give information and institute prosecution, when required to do so, of all offenses on the part of the employee insured against. 4. Pleading. Withdrawal of plea. Abandonment of defense. Where in- an action by a fertilizer company against a casualty company on its policy to indemnify for loss sustained by larceny or embezzlement of employees, the casualty company filed a plea setting up that it was unlawful for the fertilizer company to operate a gin after the passage of chapter 162, Laws 1914, hut withdrew the plea though it moved to strike out the evidence and grant it a peremptory instruction, basing the statute as a ground therefor. In such case the court had a right to treat the defense as having been abandoned with the withdrawal of the plea.