Harron v. City of London Fire Insurance

McFarland, J. This is an action to recover five thousand dollars upon an alleged parol contract for the insurance of furniture, etc., in the Southern Hotel, at Bakersfield, in Kern County. The verdict and judgment were for plaintiff, and defendant appeals.

The defendant is a corporation organized under the laws of Great Britain, and does business in the Pacific states and territories under the management of W. J. Callingham, and its head office under Ms charge is in San Francisco. It has local agents in various cities and towns, and on July 6, 1889, its agent at Bakersfield was, and for a long time had been, H. A. Blodget. On that [18]date a small fire occurred in the Southern Hotel, of which plaintiff was lessee, and in which she had a large amount of furniture and other personal property. The hotel was conducted and managed by her brother, W. H. Harron, who was her general agent for that purpose. Being alarmed at the occurrence of the fire, her said agent went to said Blodget in the afternoon of said July 8th, and told him that he wanted an insurance on said furniture, etc., to take effect immediately, and that if lie- could not obtain it from him he would go elsewhere; and it is clear that the jury were warranted by the evidence in finding that a contract of insurance on said property for one year, for five thousand dollars, was then and there made by defendant with plaintiff, to take effect immediately, provided Blodget had the authority to make such contract for defendant. On the next day, July 7th, a general conflagration, not originating in said hotel, destroyed nearly the entire town, including plaintiff’s said property, which was of a value exceeding five thousand dollars. The real question in the case is, Was the jury authorized by the evidence to find that Blodget had power to bind the defendant? (There are some minor points made about certain rulings of the court, but we do not think that in such rulings any material error was committed.)

Blodget had a written commission from defendant, which certifies that he is appointed agent of defendant, with full power to receive proposals for insurance against loss or damage by fire in Bakersfield and vicinity, to fix rates of premium, and to receive moneys on behalf of the City of London Fire Insurance Company, Limited, of London, England, subject to the rules and regulations of said company, and such instructions as may be given from time to time by the general agents of the western department of the United States.” .(The foregoing words in quotation, marks are the only words in the instrument which either grant or restrict the powers of Blodget.) Appellant con