Sovereign Camp, Woodmen of the World v. Bridges

Citations

• 165 F. 342
• 91 C.C.A. 328
• 1908 U.S. App. LEXIS 4763

Syllabus

<p>1. Compromise and Settlement (§ 6*) — 'Consideration—Dispdted Claims.</p> <p>While it is the general rule that, where a liquidated sum is due and there is no consideration for the surrender of a part of it, the payment of a less sum, though accepted in satisfaction, is not binding, a payment of a part will extinguish the whole if there be a consideration good in law; and the adjustment of a bona fide dispute as to the existence of conditions upon which it was agreed that a sum certain should or should not be owing is a sufficient consideration, and a compromise and settlement accordingly will not thereafter be disturbed by an inquiry into the truth of the matter disputed.</p> <p>[Ed. Note. — Por other cases, see Compromise and Settlement, Cent. Dig. § 38; Dee. Dig. § 6.*]</p> <p>2. Insurance (§ 579*) — Adjustment op Loss — Settlement Between Parties — ■ Validity — Praud .</p> <p>Where an insured, under a life policy providing that all rights thereunder should be forfeited in ease he committed suicide, died as the result of drinking carbolic acid, and in subsequent negotiations with the beneficiary the adjuster for the insurer said no more than that he was of opinion or was convinced from his investigations that the deceased committed suicide and that there was no liability, such statements did not constitute fraud which would invalidate a compromise and settlement of the claim agreed to by the beneficiary under legal advice.</p> <p>[Ed. Note. — Por other cases, see Insurance, Cent. Dig. §§ 1417-1419; Dec. Dig. § 579.*]</p>