Southwestern Surety Insurance v. Clay
Supreme Court of Arkansas
Appeal from Pulaski Circuit Court, Second Division ; Guy Fulk, Judge; 1. The purpose of the act of 1905 was not to tax attorneys’ fees and penalties in all cases where suit is brought on insurance policies, but only in cases where no legal excuse exists, for the nonpayment by the company within the time provided by the policy.
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Appeal from Pulaski Circuit Court, Second Division ; Guy Fulk, Judge; 1. The purpose of the act of 1905 was not to tax attorneys’ fees and penalties in all cases where suit is brought on insurance policies, but only in cases where no legal excuse exists, for the nonpayment by the company within the time provided by the policy. The good faith of the company in this case was shown by its giving a draft in settlement of the policy, but before it was presented for payment the company became insolvent and could not pay and was put in the hands of a receiver. This was a sufficient legal excuse for…
1Opinion of the CourtMcCulloch, C. J.
Appellees held a policy of fire insurance issued to them by the American Union Fire Insurance Company, and appellant was surety on the bond of said company given pursuant to statute requiring insurance companies doing business in this State to give bond “conditioned for the prompt payment of all claims arising and accruing to any person or persons during the term of said bond, by virtue of any policy issued by any such company or association upon any property in Arkansas. ’ ’
The property described in the policy was destroyed by fire, and on February 19, 1913, the loss was adjusted by the…
2Cases cited1 opinion
- American Insurance v. McGehee Liquor Co.Supreme Court of Arkansas · 1909