International Dairy Engineering Co. Of Asia, Inc. And Foremost Dairies Vietnam, S.A.R.L. v. American Home Assurance Company

International Dairy Engineering Co. and Foremost Dairies (hereinafter Foremost) appeal from a determination by the United States District Court for the Northern District of California, sitting without jury, that the destruction by fire of certain of their property caused by a parachute flare dropped from an unidentified military aircraft came within the war risk exclusion clause of an insurance policy issued on said property by appellee American Home Assurance Co. (hereinafter American), so as to relieve the latter of liability thereunder.

Foremost urges reversal upon the grounds that the District Judge made inaccurate findings of fact and misinterpreted the applicable legal principles. We affirm.

Foremost maintained and operated a milk processing plant in the Thu Due District, South Vietnam, which lies directly east of Saigon. The plant was situated approximately five miles east of Ton Son Nhut Air Base, a combined military-civilian airfield immediately adjacent to Saigon.

On June 1, 1965, American issued its Marine Open Policy No. 178 to Foremost. In addition to providing standard marine coverage for shipments to Vietnam, the policy was extended to afford land coverage to…