Industro Motive Corp. v. Morris Agency, Inc.

On February 24, 1974, a fire consumed a building along with its contents, and sparked the present controversy. The plaintiffs owned the building; defendant Royal Globe insured it; and defendant Morris Agency served as intermediary between insurer and insured. All claims, save one, have been paid.

The dispute centers on the extent of business-interruption coverage. This, in turn, depends on whether, as plaintiffs contend, an item labeled the percentage-contribution factor for coinsurance amounts to 50 percent, or, as defendants argue, 80 percent. If plaintiffs prevail, they are entitled to an…