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Grigsby v. Russell
Supreme Court of the United States
222 U.S. 149 (1911)
John Burchard had a life-insurance policy. Burchard paid two premiums toward that policy. A third premium was overdue. Burchard needed money for surgery. Burchard sold his life-insurance policy to Dr. Grigsby for $100 and an agreement that Grigsby would pay the insurance premiums for the policy. Burchard subsequently passed away. Burchard’s insurance company, Russell (defendant), brought a bill of interpleader to determine if the proceeds of Burchard’s life-insurance policy should be paid to Burchard’s administrators or to Grigsby. The circuit court of appeals held that the assignment of Burchard’s insurance policy to Grigsby was valid only to the extent of the amount of money Grigsby paid Burchard for the policy and the premiums Grigsby paid toward the policy.
Rule of Law
Holding and Reasoning (Holmes, J.)
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