Fidelity Title & Trust Co. v. Peoples Natural Gas Co.
Fidelity Title & Trust Co. v. Peoples Natural Gas Co.
Opinion of the Court
Opinion by
. The specifications of error in this case are founded upon the answers to the points submitted by the parties. The first and most material question raised by them is, whether the agreement on December 30, 1887, between the Fidelity Title & Trust Co., as trustee of the Patterson property, and the Peoples Natural Gas Co. appellant, is a bar to this action. In Ins. Co. of North America v. Fidelity Title & Trust Co., 123 Pa. 523, the present appellee unsuccessfully contended that this agreement released the Peoples Natural Gas Co. from liability for fire loss, and consequently constituted a bar to the action against the insurance company to recover its proportion of the same. If this loss was caused by the negligence of the Peoples Natural Gas Co., the liability for it was on such company, and the position of the insurer was that of a surety who is discharged by a settlement or agreement which releases the principal. It became necessary, therefore, in the case cited, to construe the agreement in question, and determine whether it operated as a release of the Peoples Natural Gas Co. from liability for the fire loss. If it did, it also operated as a discharge of the insurance company from its liability upon its covenants in reference to the same. It was held that the rights and obligations of the parties respecting the fire loss were not affected by the agreement. The reasons for this conclusion
The language objected to in the appellee’s point, which was affirmed, was taken from the opinion in Ins. Co. v. Fidelity Co., supra, and, as there used, manifestly means that the gas company, having expressly excepted the fire loss from, could not afterwards be heard to allege that the claim for it was invalidated and extinguished by, the agreement. It is equally manifest that this is the sense in which it was used and understood in the court below, because the instructions to the jury were explicit and emphatic that there could be no recovery unless it was found from the evidence that the loss was caused by the negligence of the appellant company, and that, in ascertaining the amount of the loss, the judgment against the insurance company could not be considered. In the light of these instructions, and the fact that the utmost latitude was allowed for a defence on the merits, the criticism of the affirmance of the appellee’s point seems groundless.
The construction of the written agreement was for the court, and the refusal to allow the jury to find what the parties meant by it was so obviously proper, that no argument or citation of authority is required for its vindication.
An assignment of the claim by the Fidelity Title & Trust Co., or a formal order of subrogation to its rights, is not necessary to the maintenance of the suit in its present form. The facts which entitle the appellee to such subrogation appear in evidence, and are undisputed, and the Fidelity Co. makes no objection to the use of its name in the enforcement of the claim.
There is no evidence in the case which warrants an inference of collusion between the Fidelity Co. and the appellee in the suit on the insurance policy, or that the appellee had any defence to the action which it neglected to make. It did not allege that the policy was void by reason of a violation of its conditions, and it is not apparent now that there was any
We think the evidence was sufficient to enable the jury to find, without difficulty and with reasonable certainty, the amount of the fire loss. It was this loss which was excepted from the agreement, and deducted from the estimate of the total loss, as revised by the president and agents of the appellant company, and it was testified to by James Wherry, one of the appraisers appointed by the Fidelity Co. to ascertain it.
The specifications are overruled.
Judgment affirmed.
Reference
- Full Case Name
- Fidelity Title & Trust Co., for use v. Peoples Natural Gas Co.
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- 9 cases
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- Fire Insurance—Release—Parol evidence to explain written agreement. The use plaintiff, under stress of suit by the nominal plaintiff, paid a fire loss resulting from alleged negligence of the defendant by which an explosion of natural gas occurred which damaged and set on fire the property of the nominal plaintiff. The nominal plaintiff, in consideration of a sum named, released the defendant “ from all claims of every kind arising out of the explosion, it being understood that the release did not affect the claim of the property owners against insurance companies for loss occasioned by fire, and which claim the property owner shall be entitled to receive in addition to and independently of the sum paid by the defendant.” Held that the release was no bar to an action by the use plaintiff to recover the amount of the fire damages from the defendant; and parol evidence was inadmissible to show that the intention of the parties was to bar a recovery for damages by fire as well as by explosion. Subrogation of insurer to rights of insured—Right to sue—Practice. An insurance company can, in such case, maintain a suit in the name, of the insured for the loss from fire paid by it, without an assignment of the claim or formal order of subrogation to its rights, against a party whose negligence it is alleged caused the fire.