Lynchburg Cotton Mill Co. v. Travelers' Ins.

Citations

• 140 F. 718
• 1905 U.S. App. LEXIS 3958

Syllabus

<p>Insurance — Action on Policy — Limitation by Contract.</p> <p>A clause in an insurance policy, providing that an action thereon shall be barred, unless commenced within 30 days after the right of action accrues, creates a contract limitation analogous to a statutory limitation, and conduct of the company, inducing delay in bringing suit beyond such time for the stated purpose of enabling it to investigate the claim or to negotiate for a settlement, while a waiver of such delay, is to be given only the effect intended and understood by the insured, and is not an entire abandonment or annulment of the limitation clause, but merely suspends its operation; and the limitation begins to run on a clear announcement by the company of its refusal to pay or settle the claim.</p> <p>[Ed. Note. — For cases in point, see vol. 28, Cent. Dig. Insurance, §§ 1544-1556.]</p>