Bank of Oroville v. Minnesota Fire Insurance

The plaintiffs recovered judgment in a suit upon an insurance policy for the total destruction of a warehouse by fire. The appellant contends the . claim for insurance was forfeited by failure to present sworn proof of the loss until several days after the time allowed therefor by the terms of the contract. The trial court held this clause of the policy was waived by the conduct of the insurer.

The plaintiff Hayes owned a warehouse at Oroville of the approximate value of $8,000. The Bank of Oroville held a mortgage on this and other property belonging to Hayes to secure an indebtedness of $9,000. Through a local agent, the Minnesota Fire Insurance Company, a corporation, with its western place of business at Seattle, this warehouse was insured February, 1930, for a three-year term, for the sum of $3,000. A mortgage clause was attached to the policy providing that “Loss, if any, on building only, subject however to all the terms and conditions of this policy, payable to Bank of Oroville, Oroville, California”. On June 23, 1931, the warehouse was totally destroyed by fire. At the time of.the fire Mr. Hayes was engaged as foreman of a state highway construction company near Emigrant…