NEW YORK LIFE INSURANCE CO.
v.
JACKSON ET AL.
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New York Life Insurance Company sought to cancel the reinstatement of an insurance policy on grounds of fraud, while the insured and beneficiary denied fraud liability due to the insured's mental incapacity and sought disability benefits under the policy. The Supreme Court vacated the Circuit Court of Appeals' judgment and remanded the case, holding that the court had improperly applied general law to interpret the policy when it should have applied the substantive state law of Missouri, where the policy was issued and delivered.
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Per Curiam.
This suit was brought by petitioner, New York Life Insurance Company, to cancel the reinstatement of an insurance policy upon the ground that it was obtained by fraud. The defendants, the insured and the beneficiary, denied the responsibility of the insured for any misrepresentations by reason of his mental incapacity at the time. They also filed a cross bill seeking the payment of the monthly disability benefits for which the policy provided. Decree was rendered in favor of defendants on their cross bill. The decree declared void the reinstatement of the policy but held it to be in full force from the date of its issue,. The Circuit Court of Appeals affirmed. 94 F. 2d 288. '
The stipulation of facts stated that the insured at the time of the issue of the policy in 1927 was a resident of Missouri and that the policy was delivered to the insured in that State. Findings of the District Court followed the stipulation.
The Circuit Court of Appeals considered the question’ .whether under the provisions of the policy the insurer was liable for disability benefits to the insured who became totally and permanently disabled during the period of grace following the date on which a semi-annual premium payment fell due where the premium was not paid until after the expiration of. the period of grace. The court considered the question as one of general law. Its decision should have been made according to the applicable principles of the state law which governed the interpretation of the policy. Erie R. Co. v. Tompkins, ante, p. 64; Ruhlin v. New York Life Insurance Co., ante, p. 202.
Certiorari is granted, .the judgment of the Circuit Court of Appeals is vacated, and the cause is remanded to that court for further proceedings in conformity with this opinion. v
Judgment vacated.
Mr. Justice Cardozo took no part in the consideration and decision of this case.
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Salve Regina Coll. v. Russell, 499 U.S. 225 (U.S. 1991)…that the appellate courts had applied general federal law instead of the law of the respective States, and remanded to the Courts of Appeals for consideration of the applicable principles of state law. See, e. g., New York Life Ins. Co. v. Jackson, 304 U. S. 261 (1938), and Rosenthal v. New York Life Ins. Co., 304 U. S. 263 (1938). It is true that in Bernhardt v. Polygraphic Co. of America, 350 U. S. 198 (1956), [*235] this Court remanded the case to the District Court for application of state law. The Cour…
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Black & Yates, Inc. v. Mahogany Ass'n, Inc., 129 F.2d 227 (3d Cir. 1941)…sitting in the same state. This is a logical and indeed necessary extension of the principle of Erie R. Co. v. Tompkins, supra. See Ruhlin v. New York Life Ins. Co., 304 U.S. 202, 205, 58 S.Ct. 860, 82 L.Ed. 1290; New York Life Ins. Co. v. Jackson, 304 U.S. 261, 58 S.Ct. 871, 82 L.Ed. 1329, and Rosenthal v. New York Life Insurance Co., 304 U.S. 263, 58 S.Ct. 874, 82 L.Ed. 1330. Nothing contained in Russell v. Todd, 309 U.S. 280, 60 S.Ct. 527, 84 L.Ed. 754, or in West v. American T. & T. Co., 311 U.S. 223,…
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Sampson v. Channell, 110 F.2d 754 (1st Cir. 1940)…he interpretation of the contract. The case does not indicate what the decision would have been had it appeared that the Nebraska state courts would have applied a rule differing from that of the New Mexico courts. New York Life Ins. Co. v. Jackson, 304 U.S. 261, 58 S.Ct. 871, 82 L.Ed. 1329, was a similar case. In Ruhlin v. New York Life Ins. Co., 304 U.S. 202, 208, 58 S.Ct. 860, 82 L.Ed. 1290 the court expressly left open the conflict of laws question.16 Until the point is finally ruled upon by the Suprem…
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- N.Y. Life Ins. Co. v. Jackson, 94 F.2d 288 (7th Cir. 1938)