Insurance Co. of North America v. Butte Aero Sales & Service

MURRAY, Chief Judge.

Alleging diversity of citizenship between itself and the defendants, plaintiff brought this action to have it declared that two policies of aircraft insurance which it had issued, one to Butte Aero Sales and Service, and one to Jack Elder-kin, did not cover an airplane accident in which the insured plane was destroyed and Jack Elderkin and Robert C. Hodge lost their lives. In addition to insuring the plane itself, the policies contained passenger bodily injury liability insurance.

Plaintiff based its claim of noncoverage on an exclusion clause in the policies which in…