Citizens Casualty Co. of New York v. Otis Clark & Co.

The Citizens Casualty Company of New York (Citizens) instituted this action against Swett & Crawford (S & C), insurance brokers, for breach of an agreement to obtain reinsurance contracts. Citizens also joined as defendants Christiana General Insurance Corp. (Christiana) and the Insurance Company of North America (INA) and its insurance broker, Otis Clark & Co., claiming that these companies mistakenly issued reinsurance policies on the risk for a one-year term instead of a three-year term and prayed for reformation.

The trial court determined that the causes of action were barred by the statute of limitations and rendered judgment in favor of all defendants.

Citizens appeals contending that the agreement with S & C was a written agreement and that S & C failed to plead the proper provision of the statute of limitations pertaining to written contracts and is deemed to have waived that defense.

The facts: In January of 1959, San Francisco Provident Loan Association (by its broker) requested S & C, general insurance brokers, to obtain an all risk insurance policy for a three-year term. The appellant Citizens agreed to undertake the risk subject to the express condition…