Filippo Industries, Inc. v. Sun Insurance Co. of New York

In this breach of insurance contract action, the trial court granted summary judgment motions for the insurer (Sun Insurance Company of New York; Sun) and its managing general agent (Wm. H. McGee & Co., Inc.: McGee), entered a judgment of dismissal for the insurance broker (Sander A. Kessler & Associates, Inc.; Kessler), granted a summary judgment motion for the insurer on its cross-complaint against the insured (which alleged an overpayment to the insured), and denied the insured’s (Filippo Industries, Inc.) motion to amend its complaint. We reverse the three summary judgments.

Factual Summary

Filippo Industries, Inc. (Filippo or the insured) bought clothing and stored it in a warehouse at 3100 S. Grand Avenue, Los Angeles.

On July 1, 1990, Filippo obtained insurance coverage for this clothing from Sun and McGee through an insurance broker, Kessler.

The insurance policy had a value reporting provision. This provision required the insured to submit monthly reports to the insurer of the value of its clothing inventory. Based upon these reports, the insurer assessed a premium and sent the insured an invoice.

On April 27, 1992, the policy limits were increased to $1.5…