Owl & Turtle, Inc., a Florida Corporation v. The Travelers Indemnity Company, a Foreign Corporation

TJOFLAT, Circuit Judge:

I

In July of 1974, a Pensacola, Florida, nightclub called “Robbie’s Yum Yum Tree” was destroyed by arson. Owl & Turtle, Inc., which owned the Yum Yum Tree, sought indemnification under a fire insurance policy for the loss from the defendant, Travelers Indemnity Co. (Travelers). Although admitting liability under the policy for arson, Travelers refused payment because of its belief that Robert Llewellyn, the son of the sole shareholder of the plaintiff corporation, had procured the conflagration.

Invoking the diversity jurisdiction of the district court, 1 Owl & Turtle,…