Appelbaum v. American Insurance

SWYGERT, Chief Judge.

Plaintiffs, doing business as Penguin Frozen Foods, brought this diversity action in the district court against American Insurance Company of Newark, New Jersey, seeking recovery under an All-Risk Transportation policy issued by American. Penguin’s claim consists of attorneys’ fees and other expenses incurred by Penquin in recovering $49,-973.07 from Richardo Nevarez, Jr. and Southeast Foods. After a bench trial, the district court entered judgment in favor of Penguin and against American in the amount of $21,570.08. We reverse.

The facts are not in dispute. Penguin Frozen…