First Insurance Company of Hawaii, Limited v. Carol Lee Chapman

'MERRILL, Circuit Judge.

This case presents the question whether appellant Insurance Company, under the facts is estopped to assert lack of policy coverage.

Appellee, in an earlier action in the District Court for the District of Hawaii, recovered judgment against Edith Brown and Helen Chase for personal injuries in the sum of $125,000, which judgment on appeal was affirmed by this court. Brown v. Chapman, 304 F.2d 149 (9th Cir. 1962). Appellee, while wearing a hula skirt purchased at the defendants’ store in Honolulu, had suffered serious burns when the skirt had burst into flames following…