Empire State Insurance v. American Central Insurance
New York Court of Appeals
' Appeal from order of the General Term of the Supreme Court in the fifth judicial department, made June 23, 1892, which denied a motion for a new trial and ordered judgment in favor of plaintiff upon a verdict. This was an action upon an alleged agreement between plaintiff and defendant for reinsurance of a risk taken by plaintiff upon property belonging to the Ridgway Lumber Company. The facts, so far as material, are stated in the opinion.
1Opinion of the CourtEarl, J.
The firm of Straub & Morris were agents of the plaintiff at Pittsburgh, Pa., in August, 1889, and on the 7th day of that month, as such agents, they issued a policy of insurance whereby the plaintiff insured the Ridgway Lumber Company against loss by fire to the amount of $2,500. Subsequently, on the 20th day of August, the defendant appointed them its agents also. They reported that policy to the plaintiff on the 19th day of August, and it wrote to its special agent, Frank Aull, to have the risk reduced to $1,000, and he notified the agents to cancel the policy or reduce the risk to $1,000,…
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