Shuman v. Main, Beaver & Black Creek Mutual Fire Insurance
Shuman v. Main, Beaver & Black Creek Mutual Fire Insurance
Opinion of the Court
Opinion by
The appellant brought suit on two policies of insurance covering his frame dwelling, barn and outbuildings. The case was submitted under the Acts of April 22, 1874, P. L. 109, and June 4, 1915, P. L. 822. The policies were issued by a mutual fire insurance company, and, in compliance with the regulations of the company, he deposited with it a premium note, as security for assessments arising from loss by fire, or other cause, covered by insurance policies. An assessment was levied and sent to the appellant on January 18, 1918, due February 23, 1918. A by-law of the company required assessments on premium notes to be paid within •thirty days after demand, otherwise the policy issued would be null and void until the assessments were paid. The appellant duly received the notice, but the company was not paid the amount of the assessment. On April 6th a fire destroyed Shuman’s buildings, his loss aggregating $3,830. He was present when the directors of the company met on April 13th to adjust losses and stated he mailed a check March 30th to the secretary of the company, as required by Ms notice; that the company invited payment in this manner and a policyholder should
We may assume, for the present, that the board had authority to accept and receive an overdue assessment after the destruction of the insured property; and that such receipt waived the forfeiture and continued the policy in force. The minutes of a corporation are prima facie evidence of the facts stated therein and of what took place, but parol evidence is always admissible to explain them where they are ambiguous or doubtful in meaning, or, if incomplete, to supplement them and to supply the omission: Hamill v. Supreme Council of Royal Arcanum, 152 Pa. 537, 543; Rose v. Independent Chevra Kadisho, 215 Pa. 69, 74; Schmitt v. Burns, Fleming & Co., 67 Pa. Superior Ct. 449, 452. The resolution provided the check mailed March 30th “be accepted.” It was not definitely known that the check had been lost.
Some of the assignments of error are not in proper form. We have considered all of them, however, and they present no reversible error.
The judgment is affirmed.
Reference
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- Shuman v. Main, Beaver & Black Creek Mutual Fire Insurance Co.
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- Syllabus
- Insurance — Fire insurance — Waiver of default — Minutes—Parol explanation of minutes — Corporations—Affidavit of defense — Evidence. 1. The minuteg of a corporation are prima facie evidence of the facts stated therein and of what took place, but paro.l evidence is always admissible to explain them where they are ambiguous or doubtful in meaning, or, if incomplete, to supplement and supply the omissions. 2. Where an insured under a fire insurance policy claims that he had mailed a check in payment of an assessment, within the time prescribed by the by-laws, and that his policy was not forfeited for nonpayment of the assessment, and the directors at a meeting at which the insured was present, pass a resolution that the check which the insured claimed that he mailed on March 30, 1918, in payment of his assessment “be accepted,” and subsequently the secretary of the company accepts a cash payment of the assessment, and on May 4, 1918, the directors rescind the resolution to accept the check, the company, when sued on the policy, may show by parol evidence that the resolution of the directors was passed with the express understanding that if the check were received within a reasonable time, it should be accepted, otherwise the effect of the by-law was not to be waived. Such evidence did not destroy the effect of the minutes, but was in entire harmony with them. It amplified the resolution and made it intelligible. The time from March 30th to May 4th was a reasonable time for the receipt of the check. 3. In such a case the cash payment accepted by the secretary was no part of the minute, nor authorized by it, and was subject to the explanation that if the check turned up within a reasonable time, the cash payment should relate back to March 30th, but that if the check did not turn up within a reasonable time, the cash payment should not so relate back, or he deemed a payment. 4. Where, in such case, the affidavit of defense- averred that the first resolution was passed on condition that the check alleged to have been sent was actually received by the secretary, find denied that the cash paid was accepted so as to reinstate the policy as in force before the date of the fire, the later resolution rescinding the former was admissible in evidence.