Bush Terminal Co. v. Globe & Rutgers Fire Insurance 228 N.Y. 575

Bush Terminal Company, Respondent, v. The Globe and Rutgers Fire Insurance Company of the City of New York, Appellant.

Bush Terminal Co. v. Globe & Rutgers Fire Ins. Co., 182 App. Div. 748, affirmed.

(Argued March 1, 1920;

decided March 16, 1920.)

Appeal from a judgment entered March 23, 1918, upon an order of the Appellate Division of the Supreme Court in the first judicial department, sustaining plaintiff’s exceptions to the direction of a verdict in favor of defendant and to the dismissal of the complaint and directing judgment in favor of plaintiff in an action upon a policy of fire insurance covering plaintiff’s “ legal liability in or for all merchandise held in their custody ” as warehouse-men. Certain merchandise having been delivered to plaintiff, it issued its warehouse receipt stating that it was stored in a certain building. The owner had the merchandise insured as in the building specified. As a fact it was stored in another building and was there damaged by fire. The owner was unable to collect his insurance owing to the mistake in designating the place of storage and plaintiff was called upon to pay the loss, which it did, and in turn called upon defendant to reimburse it for the amount paid. Defendant denied liability. The Appellate Division held that the “ legal liability ” clause covered the loss.

Howard Thayer Kingsbury and Charles B. Samuels for appellant.

Henry Escher, Jr., Lawson R. Jones and Cecils Iselin for respondent.