Spradley v. Georgia H. Ins. Co.

Supreme Court of South Carolina February 10, 1919

Spradley v. Georgia H. Ins. Co., 98 S.E. 285 (S.C. 1919)

112 S.C. 151; 1919 S.C. LEXIS 72

Watts

Opinion of the Court

The opinion of the Court was delivered by

Mr. Justice Watts.

This action is on an insurance policy. The policy covered a home and a piano. The home was situated on the property of another than the insured, and the piano was the property of another. The undisputed testimony establishes these facts. The building was erected under a verbal lease for three years. It does not appear that there was any stipulation therein permitting the insured to remove the building. The case was tried before Judge Moore, and a jury, at the April term of Court, 1918, for Aiken county. During the trial the issue of waiver as to the house arose. After all of the evidence was in the defendant made a motion for a directed verdict in its behalf. His Honor directed a verdict as to the claim for loss of piano, but refused as to claim for loss of house, but submitted to the jury on this issue the question of waiver. The jury rendered a verdict in favor of plaintiff for $700 and interest. After entry of judgment, defendant appealed, and by four exceptions alleges error in two particulars on the part of Presiding Judge Moore:

*154 1 First, that he erred in holding that there was sufficient evidence to submit to the jury the question of defendant’s knowledge of the ownership of the land, and that he should have directed a verdict for defendant on the whole case.

There is no doubt that the plaintiff breached the condition his policy as to the ownership of the land upon which the building was situated. There is nothing in the evidence to show a waiver of this condition of policy. Among the conditions that would render the policy void unless provided for agreement in writing added to the policy is “if the interest the insured be other than” unconditional and sole ownership, or if the subject of insurance be a building on ground not owned by insured in fee simple, etc.

2 The insurance company has the right to know what insurable interest the insured had in the property for its own protection, whether, in fee simple life estate for a year, or a term of years. Experience teaches us that the owner of a house is more circumspect and careful in looking after it than a tenant or one who leases. There is no question but that moral hazard is much better when the insured is the owner in fee of house insured. The risk is not so great. The agent of the insurance was misled when the insured said that it was part of the Ben Turner land, near the place he called “home.” This was simply a designation of its location, and carried with it no notice of ownership. It was the duty of the insured to tell agent whether hp owned or leased the land. And he did not tell the agent enough, as to the ownership of the land, for the question of waiver to be submitted to a jury. Under misleading statements, a policy is procured, and a short time afterwards the property is burned and the plaintiff is awarded the full amount of the policy, as if he were the owner in fee.

*155 3 These exceptions must be sustained. His Honor should have directed a verdict for defendant as asked for. The exceptions raising the question that his Honor was in error in holding that the policy was divisible are overruled, for the reason stated by his Honor in his ruling on this question in the Circuit Court.

Judgment reversed.

Reference

Full Case Name: Spradley v. Georgia Home Ins. Co.
Cited By: 8 cases
Status: Published
Syllabus: 1. Insurance— Waiver of Condition in Fire Policy — Evidence.— What insured told agent of company with reference to ownership of land upon which house stood held insufficient to authorize submission to jury of question whether company waived provision of Are policy, that it should be void if building insured was on ground not owned by insured in fee. 2 Insurance — Fire Insurance — Misleading Statements of Insured.— Where fire policy, providing that it should be void if insured building was on ground not owned by insured in fee, was obtained by misleading statements as to ownership of land, there could be no recovery. 3. Insurance.— Fire Insurance — Divisible Policy. — Policy providing that insurer undertakes to insure at a certain rate on the hundred, and that insurance is intended to be $700 on frame building and $300 on piano,_ is divisible, and the fact that insured was not sole and unconditional owner of personal property as required by policy, will not defeat recovery for destruction of building by fire.