Caldwell v. Fire Ass'n

Citations

• 177 Pa. 492
• 35 A. 612
• 1896 Pa. LEXIS 1009

Syllabus

<p>Insurance — Fire insurance — Statements in application.</p> <p>Where, at the time of issuing an insurance policy, the company knows or ought to know that one of the conditions thereof is inconsistent with the facts, and where the insured has been guilty of no fraud, the company is estopped from setting up the breach of said condition.</p> <p>In an action upon a lire insurance policy, it appeared that the insured acquired title to the property insured by a sheriff’s deed. About a month after the date of the deed, he signed a paper declaring that four other persons had contributed to the purchase money of the property at the sheriff’s sale, and agreeing that he would hold the title for the joint use of himself and the persons who had contributed, and that, when the property was sold or disposed of by him, he would contribute and pay to the contributors each his pro rata share of the proceeds. Seven years afterwards he applied to the defendant’s agent for insurance and the agent asked the insured “who the title was in,” to which the insured replied “ the title is in me, I have the deed.” The defendant subsequently accepted two annual premiums, and the insurance was renewed without any further information or inquiry. The company, through its agent, previously knew that more than one person was interested in the property or the proceeds thereof. Held, (1) that if a mistake had been made it was chargeable, not to the insured, but to the company’s agent, and it should be imputed to the company itself; (2) that a judgment on a verdict for plaintiff should be sustained.</p>