Stockley v. Hartley
Stockley v. Hartley
Opinion of the Court
Opinion by
The affidavit of defense, the sufficiency of which is the basis of inquiry in this case, alleges, as a defense to the action brought to recover the pro rata share from the defendants of an assessment laid by a decree of the court of common pleas of Dauphin county upon the policy holders of an insolvent mutual livestock insurance company, that the assessment is excessive in amount and based upon allegations as to liability of the company which are not true in fact, and, in the supplemental affidavit of defense, that the policies in the case of the defendants, by virtue of which a recovery is had from them, were null and void at
The decree of the court of common pleas of Dauphin county expressly reserves to each individual member of the company the right to set up any defense he may have to the collection of the assessment ordered. This, of course, relates to such defenses as are peculiar to the member and are based upon individual grounds. The defendants allege in their supplemental affidavit of defense, as peculiar to themselves, the fact that they “ intentionally and for the purpose of rendering said policies null and void, refused to pay any of said dues or assessments after the 13th day of November, 1897, and that all of the policies of said defendants held in said company, including those referred to in this suit, then and thereupon became null and void, and were so treated as null and void by the said company.” This under a paragraph of the policies issued by the company “ that a failure to pay dues or assessments for mortuary or expense fund within the time provided for in the notice of assessment shall then and thereupon render this policy null and void.” Null and void as to whom? Surely as to the defendants themselves as respects their right to recover from the company. Their own failure did not and could not nullify the right of the company to recover from them their share of the indebtedness of the company. This was a mutual company. The members were bound to each other through the company to discharge their mutual obligations. The refusal of one to pay his assessment, although such refusal took away from him the right to recover from the company any loss which he might subsequently suffer, could not in the very nature of the case
Judgment affirmed.
Reference
- Full Case Name
- Frank B. Stockley, Receiver of the Peoples Mutual Live Stock Insurance Company of Pennsylvania v. Beecher M. Hartley and Chas. W. Hartley, trading as Hartley Brothers
- Cited By
- 8 cases
- Status
- Published
- Syllabus
- Jurisdiction, G. P. — Insolvent insurance company — Assessments. An order making an assessment against the members of an insolvent mutual live stock insurance company is entirely within the jurisdiction of the court making it, and when made is conclusive of all prior matters involved in it, and it cannot be questioned in any collateral or ancillary proceeding. If the assessment is grossly excessive the interference of the appellate court may be invoked, but it must be shown that the discretion of the court below has been improvidently exercised. Insolvent mutual insurance company — Defenses to assessments. A receiver may elect to waive the time limit for suit in a policy and pay all losses without respect to that condition, and other policy holders may not set up such action as a defense in a suit for their assessments; such limitation is made exclusively for the benefit of the company. Liability of members for assessments in lapsed policies. The refusal of a membermf a mutual company to pay his assessment, although such refusal took away from him the right to recover from the company any loss which he might subsequently suffer, does not nullify his obligation to pay what others had suffered at the time he was under obligation by reason of his membership, to join in bearing the loss.