Continental Ins. Co. v. Sabine Towing Co.

HUTCHESON, Circuit Judge.

The suit was on two insurance policies to recover, up to the policy limits, $40,000 on the two, losses and expenses incurred by the insured in connection with the loss of the steam tug Coney, and in addition, for the costs of prosecuting and defending suits brought on account thereof.

The defense to the whole recovery was, that as settled by the judgment and decision in the proceeding, Sabine Towing Company brought to limit its liability,1 the loss of the tug was with fault and privity on the part of the assured2 and was not embraced in, but was excluded from, the…