MORTON SILLS, F/U/B/O RELIANCE INSURANCE COMPANY, APPELLANTS,
v.
BOSTON OLD COLONY INSURANCE COMPANY, A FOREIGN CORPORATION, ET AL., APPELLEES
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In this subrogation action, an insurer sought recovery from another insurer for a vessel stolen from a marina. The court affirmed summary judgment for the defendant insurer, finding that policy exclusions for dishonest acts by employees barred coverage, despite the theft involving outside parties.
The exclusionary provision in the insurance policy applies and bars coverage because Underwood's employees were involved in and participated in the theft, regardless of the involvement of persons unconnected with Underwood.
[1] An insurance policy exclusion for loss caused by misappropriation, conversion, or any dishonest act applies even if the theft involves individuals unconnected to the insu…
[2] Summary judgment is appropriate when an insurance policy's exclusionary provisions clearly preclude coverage for the loss at issue.
Previewing 2 of 4 headnotes on this case. FLexlaw’s editorially structured points of law — every proposition, pinpointed — are reserved for members.
Join FLexlaw to unlock all legal intelligence“Misappropriation, secretion, conversion, infidelity or any dishonest act on the part of the Assured or his or their employees or others to whom the property may be entrusted (carriers for hire excepted) whether or not such act or acts occurred during the regular hours of employment”
The policy exclusion clause at issue, which excludes coverage for dishonest acts by employees
Previewing 1 of 3 key quotes on this case — the court’s exact language, pinpointed for members.
Join FLexlaw to unlock all legal intelligenceMorton Sills purchased a vessel and insured it with Reliance Insurance Company. After the vessel was stolen while in the custody of Underwood Marine C…
The full statement of facts, procedural history, and disposition for this case are member content.
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PER CURIAM.
The appellant, Morton Sills, for use and benefit of his insurer, Reliance Insurance Company, filed this action against Underwood Marine Corporation and Boston Old Colony Insurance Company (Old Colony).
By an amended complaint it was alleged that plaintiff purchased a vessel from Underwood and obtained a policy from Reliance Insurance Company insuring against loss of the vessel; that following loss thereof Reliance had paid plaintiff and was sub-rogated; that Underwood was insured by Old Colony; that while the vessel was in custody of Underwood for correction of deficiencies in painting and equipment it was stolen from Underwood’s marina. In separate counts the plaintiff sought damages for breach of contract, and for negligence proximately causing the loss of the vessel.
The defendant, Old Colony, moved for summary judgment on the ground it was not liable for the loss of the vessel, based on certain exclusionary provisions in its policy, including the following:
“8 PERILS EXCLUDED: This policy does not insure against loss or damage caused by or resulting from: . Misappropriation, secretion, conversion, infidelity or any dishonest act on the part of the Assured or his or their employees or others to whom the property may be entrusted (carriers for hire excepted) whether or not such act or acts occurred during the regular hours of employment
The loss of the vessel was occasioned by theft, accomplished by an official and an employee of Underwood acting in concert with certain other persons not agents or employees of Underwood.
The court granted the summary judgment in favor of Old Colony by the following judgment, from which plaintiff appealed, viz.:
“The court finds that there is no coverage under the policy of insurance between Boston Old Colony Insurance Company and Underwood Marine for the alleged theft of the 34-foot Tradewinds Cruiser as set forth in the complaint. Accordingly, the court partially grants defendant Boston Old Colony Insurance Company’s motion for summary judgment on the grounds that there is no coverage.
“The court will grant, however, plaintiff’s ore tenus motion to amend its responses to affirmative defenses to include waiver by the insurance company of its right to deny coverage and reserves ruling as to whether the insurance company’s right to deny coverage was waived.”
We find to be without merit the argument of the appellant that the above policy exclusion is not applicable because the theft of the vessel was by and pursuant to a conspiracy in which persons unconnected with Underwood were involved. The evidence showed employees of Underwood were involved in and took part in the theft of the vessel. We hold no reversible error has been shown.
Affirmed.