Bethesda Salvage Co. v. Fireman's Fund Insurance Co.

CAYTON, Chief Judge.

Three insurance companies sued Bethesda Salvage Company and its president, David Deckelbaum, for return of monies overpaid on a false fire loss claim. At trial the plaintiffs offered evidence that the insured had represented verbally and in sworn proofs of claim that the loss, consisting of bales of paper destroyed by fire, was in excess of the total coverage of $6,000, and that each of the three companies paid the full amount of its liability. Plaintiffs also produced evidence that information thereafter came to light that the building involved could not have contained…