Arundel Corp. v. Federal Insurance

Plaintiff which had been engaged in widening a section of the State Barge Canal sues the defendant which had issued a policy of insurance to it to recover the amount that it had paid in settlement of a claim made against it by the owners of a barge damaged while the barge was passing through the canal. The insurance company declined to assume liability under the policy and declined to defend the suit in admiralty to which the plaintiff was made a party. The question is whether the p.1 aim falls within the risks insured against. The clause of thé policy which gave rise to the controversy is as…