In 1948, J.D. Hodges’ drug store burned down along with all of its contents. He filed insurance claims with four different insurance companies that he had policies with, and they all denied his claims.
In 1949, he hired two attorneys and sued the insurance companies to prosecute the insurance policies. The attorneys mailed the summons and complaints to the state Commissioner of Insurance, a common practice at the time. While this was accepted as valid process, all four insurance companies moved to dismiss on the grounds that state law required that they be “served” (delivered in person). While the trial court rejected this, the N.C. Supreme Court reversed and threw out the suits.
Hodges then sued his attorneys for negligence on the grounds that they failed to properly serve the process and did not re-file during the 60 days they had after the insurers moved to dismiss. The trial court dismissed the suit, and the Supreme Court affirmed this on appeal, stating that while the attorneys were wrong in their improper filing, they were “acting in good faith” in doing a commonly accepted practice and could not be faulted for that:
> The right of the Commissioner to accept service of process [by mail] in behalf of foreign insurance companies doing business in this State had not been tested in the courts. Attorneys generally, throughout the State, took it for granted that under the terms of G.S. § 58–153 such acceptance of service was adequate. And, in addition, the defendants had obtained the judicial declaration of a judge of our Superior Courts that the acceptance of service by the Commissioner subjected the defendants to the jurisdiction of the court. Why then stop in the midst of the stream and pursue some other course?
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In 1948, J.D. Hodges’ drug store burned down along with all of its contents. He filed insurance claims with four different insurance companies that he had policies with, and they all denied his claims.
In 1949, he hired two attorneys and sued the insurance companies to prosecute the insurance policies. The attorneys mailed the summons and complaints to the state Commissioner of Insurance, a common practice at the time. While this was accepted as valid process, all four insurance companies moved to dismiss on the grounds that state law required that they be “served” (delivered in person). While the trial court rejected this, the N.C. Supreme Court reversed and threw out the suits.
Hodges then sued his attorneys for negligence on the grounds that they failed to properly serve the process and did not re-file during the 60 days they had after the insurers moved to dismiss. The trial court dismissed the suit, and the Supreme Court affirmed this on appeal, stating that while the attorneys were wrong in their improper filing, they were “acting in good faith” in doing a commonly accepted practice and could not be faulted for that:
> The right of the Commissioner to accept service of process [by mail] in behalf of foreign insurance companies doing business in this State had not been tested in the courts. Attorneys generally, throughout the State, took it for granted that under the terms of G.S. § 58–153 such acceptance of service was adequate. And, in addition, the defendants had obtained the judicial declaration of a judge of our Superior Courts that the acceptance of service by the Commissioner subjected the defendants to the jurisdiction of the court. Why then stop in the midst of the stream and pursue some other course?
Damn he got everyone after him