Richard D. Brew & Co. v. Auclair Transportation, Inc.

211 A.2d 897 (1965)

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Nature of the Case

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Facts

P had an insurance contract with Employers’ Liability Assurance Co. (E) for coverage of mining equipment. The contract of insurance provided in part as follows: '6. Benefit of Insurance. It is agreed by the Insured that this insurance shall not inure directly or indirectly to the benefit of any carrier, bailee, or other party, by stipulation in bill of lading or otherwise, and any breach of this agreement shall render this policy null and void.' The premium was $150 and the equipment was worth about $19,000. P shipped the equipment to Nevada on a bill of lading that stated: 'Any carrier or party liable on account of loss of or damage to any of said property shall have the full benefit of any insurance that may have been effected upon or on account of said property, so far as this shall not avoid the policies or contracts of insurance, provided that the carrier reimburse the claimant for the premium paid thereon.” The equipment was damaged to the tune of $19,000 and P submitted a loss to E. E paid P and P then sued under subrogation for E’s benefit. D immediately claimed it was only liable for $150, the cost of the premium.