Union Life Ins. v. Riggs

Citations

• 123 F. 312
• 1903 U.S. App. LEXIS 4899

Syllabus

<p>1. Equity Jurisdiction—Adequate Remedy at Law—Cancellation of Instruments.</p> <p>A federal court of equity has jurisdiction of a suit to cancel a life insurance policy for fraud in its procurement, though instituted after the death of the insured, where there is the requisite diversity of citizenship between the parties; the fact that the fraud might be set up in defense to an action on the policy in the state court, if defendants should bring such action, not giving an adequate remedy at law to exclude the jurisdiction of equity.</p> <p>2. Same—Federal Courts—State Statute.</p> <p>The provision of Rev. St. Mo. 1899, § 7890, that whether a misrepresentation made in procuring a life insurance policy is material shall be a question for the jury, merely declares a rule of state practice, and cannot affect the jurisdiction of a federal court of equity to entertain a suit for the cancellation of a policy for fraud and misrepresentation in its procurement.</p> <p>8. Federal Courts—Following State Decision.</p> <p>A ruling of the supreme court of a state that a suit for the cancellation of a life insurance policy cannot be maintained after the death of the insured is upon a matter of general law, and is not binding on a federal court sitting within the state.</p> <p>¶ 2. State laws as rules of decision in federal courts, see notes to Griffin v. Wheel Co., 9 C. C. A. 548; Wilson v. Perrin, 11 C. C. A. 71; Hill v. Hite, 29 C. C. A. 553.</p> <p>¶ 3. See Courts, vol. 13, Cent. Dig. § 979.</p> <p>4. Cancellation of Life Insurance Policy—Right of Action—Effect of Death of Insured.</p> <p>A life insurance company from which a policy was procured by fraud is not deprived of the right to maintain a suit for its cancellation by the death of the insured, where the fraud was not discovered during his lifetime.</p> <p>5. Same—Parties—Joinder of Co-Conspirators.</p> <p>In a suit for the cancellation of a life insurance policy on the ground that it was obtained through a fraudulent c