W. S. Shamban and Company, a Corporation v. Commerce and Industry Insurance Company, a Corporation, and Does I Through V

This appeal resulted from an action brought by W. S. Shamban and Company against its insurance carrier for breach of the insurance provisions in which the insurance carrier, Commerce and Industry Insurance Company, failed to pay to its insured amounts due under a business interruption policy in force during a fire at the Fort Wayne, Indiana, plant of plaintiff.

On April 12, 1967, a fire at plaintiff’s plant damaged one production oven and temperature control mechanism of the oven, together with machinery used for processing metal parts. In addition, a recently installed device known as a “Gatlin Gun Sintering Rack,” used in a revolutionary method for producing “core molded” tubes was destroyed.

At the time of the loss there was in effect a policy of insurance between plaintiff, as insured, and defendant, as insurer, under which defendant agreed to indemnify plaintiff for business interruption loss caused by such a fire. More specifically, the policy insured plaintiff against:

The policy defined “loss of earnings” as:

Plaintiff was awarded judgment in the sum of $121,000 by the trial court.

Appellant before this court contends the lower court improperly computed appellee’s…