Ingram-Johnson v. Century Insurance Co., Ltd

Held that the clause in the policy was a standing offer by the company which the pursuer had accepted by his letter, thus constituting a concluded contract to surrender, and that the company were thereafter only liable for the surrender value.

On 27th March 1908 Dr Ingram-Johnson, South Moor, Durham, brought an action against the Century Insurance Company, Limited, Edinburgh, in which he sought declarator that a certain insurance policy issued by them to him was still in force. He also claimed payment of a sum alleged to be due thereunder.

The defenders pleaded, inter alia —“(1) The pursuer having surrendered the policy sued upon, and the same not being now in force, the defenders are entitled to absolvitor.”

On 27th October 1908 the Lord Ordinary ( Skerrington ) repelled the first plea-inlaw for the defenders, found in terms of the declaratory conclusions of the summons, and quoad ultra sisted the action to await arbitration.

Opinion .—… [ After narrating the nature of the action and the correspondence between the parities ] … “It is apparent from the correspondence that between the 13th and the 18th of December the policy had found its way into the hands of the defenders, but there is no letter sending it. The defenders allege in article 3 of their statement of facts that the pursuer forwarded the policy to them a day or two after the 13th of December, and although this allegation is denied in the answer, its accuracy was not, I think, disputed by the pursuer's counsel.