Harrison v. Lumbermen & Mechanics' Insurance
Missouri Court of Appeals
Appeal from the St. Louis Circuit Court. It is not the duty of one receiving security from his employee or debtor to disclose to the surety every fact that materially increases the risk; his duty in such case is not analogous to that of assured to the underwriter. — Hamilton v. Watson, 12 CL & Fin. 119 ; Insurance Co. v. Lloyd, 10 Exch. 523; Magee v. Insurance Co., 92 U. S. 93; Bank v. Stevens, 39 Me. 532 ; The State v. Atherton, 40 Mo. 209. Mere nondisclosure of past…
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Appeal from the St. Louis Circuit Court. It is not the duty of one receiving security from his employee or debtor to disclose to the surety every fact that materially increases the risk; his duty in such case is not analogous to that of assured to the underwriter. — Hamilton v. Watson, 12 CL & Fin. 119 ; Insurance Co. v. Lloyd, 10 Exch. 523; Magee v. Insurance Co., 92 U. S. 93; Bank v. Stevens, 39 Me. 532 ; The State v. Atherton, 40 Mo. 209. Mere nondisclosure of past misconduct, known to the obligee and unknown to the surety, no inquiry being made by the surety, is not fraudulent in any…
1Opinion of the CourtHayden, J.
The case was referred, and the referee reported the material facts, in substance as follows: The plaintiff was a stockholder in the defendant company, and from 1872 until 1876, a director. One Bull had for several years before 1873 been secretary of the company, and as such he received the moneys of the company, which were also disbursed through him upon order of the proper officer. In the fall or early winter of 1873, Bull became a defaulter in his accounts with the company. Mr. Pritchard was at this time president of the company, and continued such until May, 1876. On the defalcation…
2Cases cited6 opinions
- Magee v. Manhattan Life InsuranceSupreme Court of the United States · 1876
- Franklin Bank v. CooperSupreme Judicial Court of Maine · 1853
- Ham v. GreveIndiana Supreme Court · 1870
- Evans v. KeelandSupreme Court of Alabama · 1846
- Franklin Bank v. StevensSupreme Judicial Court of Maine · 1855
1 more not listed; retrieve them via the Exa API.
3Cited by5 opinions
- American National Bank v. DonnellanCalifornia Supreme Court · 1915
- Sumitomo Bank of Cal. v. IwasakiCalifornia Supreme Court · 1968
- St. Charles Savings Bank v. DenkeeSupreme Court of Missouri · 1918
- Lambert v. HeatonDistrict Court of Appeal of Florida · 1961
- Third National Bank v. OwenSupreme Court of Missouri · 1890