Bole v. New Hampshire Fire Ins.
Bole v. New Hampshire Fire Ins.
Opinion of the Court
Opinion by
Hugh M. Bole, a manufacturer in the city of Pittsburgh, made a deed of assignment for the benefit of creditors in April, 1891. The plaintiffs are the assignees. At the time of the assignment H. M. Bole held a number of policies of insurance upon his building, machinery and materials, which did not ex
This appeal depends on the meaning of the words “ cease to be operated for more than ten days,” found in the provision we have quoted from the policy. In determining the meaning of these words we must remember that words having no fixed technical meaning should be taken in their natural and obvious sense; that a provision capable of two or more meanings should be construed most strongly against him whose undertaking it is; and that the circumstances surrounding the parties when the contract was made, and affecting the subject to which it relates, form a sort of context that may be resorted to in doubtful cases to aid in arriving at the meaning of the contract.
In Philadelphia Tool Company v. The Assurance Company, 182 Pa. 236, the policy contained a provision that it should be void unless “ the assured was the sole and unconditional owner of the property insured.” He was in fact a lessee. But it appeared that the policy was issued without a written application and on the knowledge of the agent. We construed this provision in the light of the circumstances surrounding the issuing of the policy and permitted the insured to recover for the leasehold interest which was actually held by him.
In Krug v. German Fire Insurance Co., 147 Pa. 272, a can
In Doud v. Citizens Insurance Co., 141 Pa. 47, and in Roe v. Dwelling House- Ins. Co., 149 Pa. 94, the policies sued on contained a provision that they should be void if the premises should be vacated without the consent of the insurer. In both cases the fire occurred while the houses were unoccupied, between the outgoing of one tenant and the incoming of another. In Roe’s case the tenant went out on the twenty-fourth of March, although his lease did not expire till the first of April. Another tenant was to move in on the first of April. The fire occurred on the twenty-eighth of March. We held that, as to the owner, the premises had not been vacated within the meaning of the policy. The property was under lease, but some time might naturally elapse between the outgoing and incoming of tenants, which might vary with circumstances over which the insured had no control.
A similar disregard of the mere letter in aid of the real purpose of the contract was made in Dougherty v. The Pacific Mutual Life Insurance Company, 154 Pa. 385. The policy-provided that the company should not be liable if the insured was injured or killed while on a railroad bridge, trestle or roadbed. He was killed on the roadbed of a railroad at a public crossing while passing along a highway. We held the company to be liable.
Similar in principle are the cases of Pickett v. The Insurance Co., 144 Pa. 79, and Humphreys v. Benefit Association, 139 Pa. 264. In each case the letter was disregarded in order to reach a proper interpretation of a stipulation in the policy.
In the case before us when the policy was issued the proprietor of the manufactory had failed. His property was in the hands of his assignees, who wrere seeking insurance. The ma
The judgment is therefore affirmed.
Reference
- Full Case Name
- Bole, Assignee v. New Hampshire Fire Ins. Co.
- Cited By
- 36 cases
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- Syllabus
- Contract — Construction—Doubtful words — Surrounding circumstances. Words in a contract which have no fixed technical meaning should be taken in their natural and obvious sense. A provision capable of two or more meanings should be construed most strongly against him whose undertaking it is, and the circumstances surrounding the parties when the contract was made and affecting the subject to which it relates form a sort of context, that may be resorted to in doubtful cases to aid in arriving at tiie meaning of the contract. Fire insurance — Covenants—Operation of factory. A policy of fire insurance on a manufacturing establishment provided that the policy should be void if the factory should “ cease to be operated for more than ten consecutive days.” The policy was a renewal policy on a manufacturing establishment, which at the time of the renewal was in tire hands of an assignee for creditors. On or about the day on which the old policy expired, the insurance broker through whom it had been obtained visited the premises to see about its renewal. The machinery was not then in operation and had not been for some days, but the premises were actually occupied by the foreman, who was engaged in putting together and making sale of engines and other articles belonging to the assigned estate. The broker renewed the policies for an amount then agreed upon and the premiums were paid. After being occupied in this way for several months, a fire occurred. Held, that the factory had not ceased to be operated within the meaning of the policy, and that the assignee was entitled to recover the value of the property insured.