Barco v. Penn Mut. Life Ins. Co. of Philadelphia

HOLMES, Circuit Judge.

This suit was filed in equity to compel the reinstatement of a life insurance policy and the payment of benefits accrued thereunder on the ground that the policy had been improperly and illegally cancelled due to a mutual mistake as to an existing fact. The court below held that the circumstances relied upon did not constitute a mutual mistake of fact, and judgment was entered for the insurer. The plaintiffs appealed.

These are the undisputed facts: Samuel J. Barco purchased a policy of life insurance from the Penn Mutual Life Insurance Company. On April 25, 1938, when…