Clift v. Fulton Fire Insurance

This is a suit on a fire insurance policy on plaintiffs’ household goods and personal effects for $5,000, and for 25 per cent penalty under our statute for bad faith refusal to pay (T.C.A. sec. 56-1105). Defendant pleaded non assumpsit, nil debit, and a special plea charging plaintiffs had breached the condition in the policy and were guilty of fraud and false swearing in stating in their proof of loss that the value of the goods lost was $10,339.06, when in fact such value was not more than $2,500.

The case was tried before the Judge without a jury. He rendered judgment for plaintiffs for…