Rochford v. McGee

Citations

• 16 S.D. 606
• 61 L.R.A. 335
• 94 N.W. 695
• 1903 S.D. LEXIS 132

Syllabus

<p>1. By means of iradulent representations, upon which defendant, relied, an insurance agent obtained defendant’s signature in two places to a one-paged instrument, purporting^to be an application for live stock insurance, as a part of which, just below the first signature of defendant, extending across the page, and closely resembling a number of dotted lines, was a note, in printing, writing and figures, signed by defendant. The note, given for the purpose of securing the.payment of subsequent assessments, none of which were ever made, was thereafter detached at the perforated line, without defendant’s 'knowledge and purchased by plaintiff without notice of the fraud. Held, that the detachment of the note constituted a material alteration of the application and rendered the note void; it appearing that defendant was not guilty of negligence in executing it.</p> <p>2. The insurance company, named as payee in the note, which was negotiable in form, was a corporation organized pursuant to Laws 1897, p. 201. c. 71, under the provisions of which it possessed no power to insure live stock against any loss other than that occasioned by fire, lightning hail and cyclones. Section 8 of the act prohibits the insurance of property in any incorporated city or village, and expreesly declares that all notes taken as evidence of indebtedness for unpaid assessments shall in all cases be nonnegotiable. The company attempted to insure gen-orally a stallion kept in an incorporated village against death, from any cause in an amount tenfold greater than that authorized. Held that the note was void in the hands of a third party, even though he had no further notice than that imported by the face of the instrument.</p>