Ranger Insurance Company v. MacY

DOYLE, Justice.

The plaintiff, Ranger Insurance Company, issued a policy on defendant Macy’s airplane. After the insured airplane was damaged in an accident a lien on the plane of $12,000 held by a party not involved here was foreclosed. Ranger paid the lienholder $12,000 and took title to the plane according to the terms of a Breach of Warranty Endorsement attached to the insurance policy. 1 Macy then purchased the airplane from Ranger for $4,680.60, its salvage value.

Ranger brought this action against Macy alleging there was no coverage on the plane at the time of the accident because Macy…