Northwestern Mutual Hail Insurance v. Fleming

Citations

• 12 S.D. 36
• 80 N.W. 147
• 1899 S.D. LEXIS 72

Syllabus

<p>1. Under Comp-. Laws, 3589-3591, which permit a party to rescind a coo tract for fraud, but require him to act promptly on discovering the facts, and to restore the consideration received, one who takes'a policy of hail insurance, and retains the same, and receives the protection afforded thereby during the full season covered by its terms, cannot thereafter rescind the contract on the ground that he was induced to enter into it by fraud; his remedy being by an action for the deceit, or a counterclaim for damages sustained, in case an action is brought against him on the contract.</p> <p>2. In an action on a note given for membership in a mutual hail insurance company, to recover assessments made thereon, an allegation in the answer that defendant was induced to enter into the contract by misrepresentations made by plaintiff as to the number of members and the amount of insurance it then had, and that, if such representations had been true, the amount of defendant’s assessment would have been materially less, is insufficient and too vague and indefinite to constitute a counterclaim for damages.</p>