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Conflict of Laws Keyed to Brilmayer
Home Insurance Co. v. Dick
Citation:
281 U.S. 397 (1930)Facts
Defendant, Compania General Anglo-Mexicana de Seguros S.A. (CGAM), a Mexican corporation, issued a fire insurance policy to Bonner, a Mexican resident. Bonner assigned the policy to Plaintiff, Dick, which insured a tugboat while sailing in certain Mexican waters. The policy included a provision that expressly prohibited Dick from seeking to collect unless a claim was filed within one year of the damage to the tugboat. This limitation was in accordance with Mexican law, which expressly governed the insurance policy. The premium was paid in Mexico, and the loss was payable in the City of Mexico. Dick resided in Mexico, but his permanent residence was Texas.
Co-Defendants, Home Insurance Company (HI) and Franklin Fire Insurance Company (FF), were two New York corporations that executed reinsurance contracts with CGAM relating to the tugboat’s coverage. The contracts of reinsurance were effected by correspondence between Mexico and New York. Nothing was to be done in Texas.
Dick brought suit against Defendants in Texas state court, seeking to recover for the total loss of the tugboat. In rem jurisdiction was established against HI and FF through garnishment. HI and FF argued that Dick failed to file suit within the one-year limitation period. Dick argued that the one-year limitation was contrary to Texas state law, which prohibited contracts that provided less than two years to sue. The trial court found in favor of Dick.
On appeal, HI and FF argued that the Texas state law violated due process under the 14th Amendment, but the appellate court upheld the judgment of the trial court. The U.S. Supreme Court granted HI and FF’s petition for certiorari. The Supreme Court’s opinion does not include CGAM because the Mexican corporation has never admitted to doing business in Texas and never authorized anyone to receive service of process or enter an appearance in the case.
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Judgments from Other States and Foreign Nations