Hilton

On or about June 1, 1927, the defendant insurance company issued to one Farwell, as owner of the sloop “California”, a policy of insurance covering that ship. On or before November 13, 1927, Farwell sold the ship to this plaintiff, a bill of sale being executed to the plaintiff’s wife and the testimony showing that the purchase price was paid out of their community funds. At the same time, the policy of insurance was assigned by Farwell to the plaintiff. The policy in question contained the following clause: “It is also agreed that this insurance shall be void in case this policy or the interest insured thereby shall be sold, assigned, transferred or pledged without the previous consent in writing of the insurer.”

It is conceded that the written consent of the defendant to the transfer in question was never obtained. On March 4, 1928, while in the possession of the plaintiff, the sloop was run aground in the middle of the entrance to Newport Bay. The day after the ship went on the rocks, the defendant’s agent in Los Angeles instructed a firm of marine engineers to “proceed to the scene of the loss and to do the necessary”. At that time the engineers informed the defendant’s agent…