Acme Galvanizing Co. v. Fireman's Fund Insurance

Opinion

STRANKMAN, J.

I. Synopsis of Case

Plaintiff and appellant Acme Galvanizing Co., Inc. (Acme), was the insured under an “all risk” commercial insurance policy issued by defendant and respondent Fireman’s Fund Insurance Company (Fireman’s). In February 1982, a steel kettle at Acme’s Stockton plant ruptured, allowing several tons of molten zinc in the galvanizing process to spill onto the surrounding equipment. Acme ultimately submitted a loss claim under the policy to Fireman’s. Following an investigation, Fireman’s denied coverage on the ground the loss was not caused by an external cause,…