Lewis Food Co. v. Fireman's Fund Insurance

The defendant insurance company issued to the plaintiff a policy of insurance in the amount of $150,000 which was in part as follows (the typewritten portion thereof being indicated by the use of italics): “1. The conditions of this policy are that if the building(s) or structure (s) or machinery or equipment and/or raw stock excluding packaged sheet steel ... on premises situated No. 801 and 817 East 18th Street Los Angeles, California and occupied as food manufacturing plant be destroyed or damaged by the perils insured against occurring during the term of this policy so as to necessitate a total or partial suspension of business, this Company shall be liable under this policy, subject to the following conditions and limitations, for the actual loss sustained by reason of such suspension, consisting of: Item I. The net profits of the business which is thereby prevented; Item II. Fixed charges and expenses, only to the extent to which they would have been earned had no loss occurred, as follows : . . . ” The policy contained a contribution clause, part of which was in the following language: “This Company shall be liable, in the event of loss, for no greater proportion of the…