Connecticut Fire Insurance Co. v. Fox

Facts

A.H. and Edith Fox (Plaintiffs), owners of a motel, obtained fire insurance from Connecticut Fire Insurance Co. (Defendant). On March 25, 1964, a fire destroyed a substantial portion of the motel. Under the contract, Plaintiffs were required to submit a proof of loss within sixty days, unless Defendant extended that period of time in writing. The day after the fire, Mr. Foster of General Adjustment Bureau (GAB) visited the motel on behalf of Defendant. Foster had Plaintiffs sign a “non-waiver” agreement, which stated that no action of Defendant in investigating the fire would waive any terms of the policy, and that no representative of Defendant had the right to waive any terms of the insurance policy except by writing. Foster also explained the loss recovery procedures and furnished inventory forms for Plaintiffs, but did not mention the proof of loss requirement. On May 5, 1964, Plaintiffs presented completed inventory forms to Foster, who rejected them as unsatisfactory. Foster also rejected Plaintiffs’ submission of a bid to rebuild the motel. During this period, Plaintiffs’ time to file a proof of loss expired. On June 3, 1964, Foster gave Plaintiffs’ a letter acknowledging the expiration of time to file a proof of loss and allowing Plaintiffs to file one by July 3, 1964. Plaintiffs submitted a proof of loss on June 6, 1964. After Defendant failed to settle the claim, Plaintiffs sued on July 7, 1964. Thirty days later, Defendant rejected Plaintiffs’ proof of loss. At trial, the jury found in favor of Plaintiffs. Defendant appealed on grounds that Plaintiffs failed to file a proof of loss in a timely manner.