Boston Insurance Company, a Corporation v. Hyrum Jensen, Individually and Doing Business as Eureka Lumber Company

The Boston Insurance Co., a Massachusetts corporation, hereafter Insurer, appeals from a judgment of the District Court in a jury-tried case holding it liable for $20,000 on its policy for that amount issued in California to Hyrum Jensen, a citizen of California, hereinafter the Insured, for damage by fire to a stock of lumber and movable lumber machines contained in an enclosed lumber shed in Eureka, California.

The Insurer urges two main contentions. One is that the fire was caused by the arson of the Insured. On this we agree with the Court’s instruction that the evidence was not sufficient to support charge of arson, and affirm the decision of the Court against the Insurer on this issue.

The other contention is that Insured conspired with his son Dee Jensen to falsely increase the amount of lumber burned and did falsify its claim to the Insurer for $20,000.

Appellee claimed and testified that approximately 100,000 board feet of lumber burned worth over $20,000. There was contrary testimony that the amount of lumber in the shed was less than 2,000 feet. Dee Jensen, as his father’s agent, was responsible for estimating Insured’s loss and there was evidence that Dee Jensen…