Northman v. Liverpool, London & Globe Insurance
Northman v. Liverpool, London & Globe Insurance
Opinion of the Court
On the night of the 3d of January, 1873,. the stock of goods of the Northmans, upon which there was insurance to the amount of $25,000 in the defendants’ companies, was destroyed by fire, except a remnant of $650, which, it is alleged in the bill, by agreement with said companies immediately after the fire, the complainants took at a valuation of $650. Shortly thereafter, the said complainants made a general assignment of their effects, including the policies of insurance, to their co-complainant John Lawrence, for the benefit of creditors. The original bill was filed on the 22nd of March, 1873, against the insurance companies as non-residents of the state, and W. W. Hobbs, comptroller of the state as holder of twenty thousand dol
Tbe defendant 'Hobbs answered tbe bill admitting tbe possession of bonds as charged. Tbe insurance companies demurred.
In tbe meantime, under proceedings in bankruptcy, tbe complainants, E. & J. Northman, were declared bankrupts, and their property was assigned to E. McP. Smith as assignee. On tbe 20th of September, 1873, Smith, as such assignee, filed a bill against tbe insurance companies, John Lawrence and John C. Burch, tbe present comptroller of tbe state, setting out tbe filing of tbe former bill and its contents, that be bad been appointed assignee of tbe Northmans who were duly declared bankrupts, that tbe effect of tbe bankrupt proceedings was to annul tbe assignment to Lawrence, and, after making some amendments to tbe original bill, asked that tbe former suit be revived in bis name, and that be have tbe relief prayed for therein.
Upon a motion to dismiss tbis bill upon grounds assigned, I was of opinion, and so decreed, that Smith’s bill was an original bill in tbe nature of a supplemental bill and bill of revivor, and not amenable to tbe objections raised by tbe motion
Tbe insurance companies have now demurred. They demur to so much of tbe bill as is supplemental in its character
1. Because complainant shows no right on the face of his bill to the benefit of the former proceedings.
2. Because the bill is filed in a right wholly inconsistent with the right in which the bill was filed in the original cause.
They demur to so much of the bill as is original in its character :
1. Because the demand sought to be set up against defendants, is of a character purely legal, and the remedy at law .adequate and unembarrassed, and no attachment or injunction prayed, or allegation made sufficient to give the court jurisdiction.
2. Because no property is attached or sought to be attached, nor injunction prayed, and the bill shows defendants are non-residents of the state, and no personal decree is sought or can be rendered against the defendants.
3. Because the bill is multifarious.
The first ground of demurrer to the bill, so far as it is supplemental, is, that complainant shows no right to the benefits of the former proceedings. The former bill, it mil be recollected, is in the names of E. & J. Northman and John Lawrence, the assignee under the general assignment for creditors. It proceeded upon the ground that the legal title to the policies was in E. & J. Northman, the beneficial interest in Lawrence, and was expressly by the former for the use of the latter. No one will pretend that the name of Lawrence might not have been stricken out of the bill, and the suit continued in the name of the Northmans alone, subject, of course, to the right of the defendants to rely, by proper pleadings, upon the defense that the Northmans had in fact no interest, and that the light of action was in Lawrence. If, also, it turned out in the progress of the cause that the assignment to Lawrence was void for any reason, it is clear that the fact would not prevent the Northmans from recovering, if the legal title and beneficial interest were in them. So, if the Northmans were shown to have no interest, legal
The second ground of demurrer, that the bill is filed in a right inconsistent with the right in which the original bill was filed, is obviously not tenable, for the reason just given. The original suit was in the name of the Northmans, and based upon their alleged legal right of recovery, although for the use of Lawrence. The new bill, in its supplemental character, shows that the interest of Lawrence was ended by the act of bankruptcy, and that the entire interest of the Northmans passed to the assignee. The right of the assignee is consistent with the right of the Northmans, and, for that matter, of Lawrence too, who was, like the assignee ‘in bankruptcy, a trustee for creditors. There is not the least inconsistency in the rights set up in the two bills, they being, in reality one and the same. The demurrer, therefore, so far as it goes to the bill as supplemental, is not well taken, and must be overruled.
The first two grounds of demurrer to the bill as an original bill, are, in substance, the same, namely, that the remedy is at law, and no attachment or injunction is prayed, or allegation made sufficient to”give this court jurisdiction. Put
Tbe last ground of demurrer, tbat tbe bill is multifarious, in seekmg to recover on several separate and distinct demands against several separate defendants, is more plausible. Tbe bill undertakes to show a connecting link between tbe defendants in tbe fact they are each entitled to a credit for its proportional part of tbe $650, the value of tbe remnant of goods taken by tbe Northmans at tbat price by agreement, and tbat this proportion cannot be ascertained without having all tbe defendants parties to tbe account. This is met
Case-law data current through December 31, 2025. Source: CourtListener bulk data.