American Casualty Company of Reading, Pennsylvania, a Corporation v. J. P. Glorfield

Plaintiff-appellee, J. P. Glorfield, of Whitman County, Washington, was the insured under a blanket farmers’ liability policy written in the state of Washinton by the defendant-appellant American Casualty Company of Reading, Pennsylvania. The policy period was for the year ending March 21, 1950. No federal questions are presented. Jurisdiction rests solely on the diversity of citizenship of the parties.

On Glorfield’s farm in Whitman County he maintained an earthen dam across a small creek or stream called Packer Creek. The stream seems to have been of little consequence except in connection with floods after rains. From time to time after rains the dam washed out. It is wholly immaterial to the decision of the case, but it may not be inappropriate to note that in view of the history of the successive dams at the particular damsite on Packer Creek the defendant, under its blanket farmers’ liability policy, undertook a poor risk.

The dam washed out on February 25, 1950. It would be admitted by all parties that some damage was done to Helen S. Schroeder and Fred E. Wagner, separate land owners below Glorfield on Packer Creek, by the impounded flood waters released by the broken…