Detroit Trust Co. v. Transcontinental Insurance of New York

This is an appeal from a judgment in favor of plaintiff in an action for indemnity on a fire insurance policy.

The plaintiff is the trustee of the Feather River Pine Mills Company, which operates its lumber-mills near Oroville in Butte County. It was successor to the Hutchinson Lumber Company. In 1923 a trust indenture was executed by the first-mentioned company to the plaintiff by the terms of which it was provided the trustee should keep the milling property insured for eighty per cent of its insurable value, payable in the name of the trustee. Marsh & McLennan were general insurance agents. However, for several years this company had acted as brokers for the milling company in procuring, its insurance and for this purpose became its agent. Mr. Land, president of the Feather River Pine Mills Company, testified, “They (Marsh & McLennan) were acting as our brokers.” They were not the agents of the defendant Insurance Company. Mr. Hoditz, chief accountant of this brokerage company, testified: “Marsh & McLennan did not . . . act as general agents for the Transcontinental Insurance Company of New York. Marsh & McLennan had nothing to do with the writing or issuance by the…