Faysound Limited, a Corporation v. United Coconut Chemicals, Inc., United States Aviation Underwriters Incorporated

Faysound Limited (Faysound) appeals the dismissal by the district court of its suit against United States Aviation Underwriters, Inc., et al. (the Insurers). We affirm.

HISTORY

In 1982 Faysound, a Hong Kong corporation, leased for five years a Falcon 50 land-plane to lessees who ultimately were United Coconut Chemicals, Inc.; United Coconut Life Assurance Corp.; United Cocoa Plantations, Inc.; San Pablo Manufacturing Corporation; Legaspi Oil Company, Inc.; Granex Manufacturing Corporation; Iligan Coconut Industries, Inc.; Metroplex Commodities, Inc.; and Lucena Oil Factory, Inc. The nine lessees were all Philippine corporations.

By the terms of the lease the lessees agreed to insure the plane “against loss or damage by accident, fire and theft, to the full replacement value.” In the event “of loss or damage of the aircraft beyond repair” the lessees agreed to pay Faysound “the then prevailing market value of the aircraft” less any insurance proceeds Fay-sound had received; the lessees “irrevocably” authorized Faysound to receive any insurance paid pursuant to the policy the lessees agreed to obtain.

The insurance policy obtained by the lessees from the Insurers issued with the…