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Gilbert v. Globe & Rutgers Fire Insurance Co.

Supreme Court of Oregon
171 P. 1161, rehearing denied 178 P. 358 (Or. 1918)


Gilbert (plaintiff) had a fire insurance policy with Globe & Rutgers Fire Insurance Co. (Globe) (defendant). The policy stated that Gilbert could not bring a suit on the claim beyond 12 months after any fire that occurs. Gilbert’s cottage burned down in 1912. Gilbert promptly notified Globe. Subsequently, Astoria Lumber, a third party, filed a writ of garnishment to obtain any insurance proceeds Gilbert obtained. Gilbert alleged that Shankland, an adjuster for Globe, promised that payment would be made to Gilbert on his insurance policy as soon as the garnishment proceedings were disposed of. About one year after the fire, in 1913, Shankland then said Globe would be denying Gilbert’s claim. Gilbert did not file suit until almost three years later, in 1918. The district court ruled that the suit was sustainable in favor of Gilbert. Globe appealed.

Rule of Law


Holding and Reasoning (Johns, J.)

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