Liverpool & London & Globe Insurance v. Eagle Cotton Oil Co.

Eagle Cotton Oil Company held a mortgage on certain gin property owned by Brooks Reid. There were five insurance policies covering the property. The gin and machinery (everything except the seed house) were destroyed by fire on September 24, 1960.

Suit was filed by Eagle on each policy. The suits were consolidated and tried at one time. In each policy Eagle was named as mortgagee in the standard mortgage clause insofar as building items were concerned and on items other than building items there was a loss payable clause in favor of Eagle. Each policy contained the following provision:

“Special…