Cinema Schools, Inc. v. Federal Union Ins.

This is a companion ease to Cinema Schools, Inc., v. Westchester Fire Ins. Co. (D. C.) 1 F. Supp. 37 . The facts involved in the two suits are identical, except that here the chattel mortgage discussed in the Westchester Fire Insurance Company opinion was in existence at the time the present defendant issued its policy of insurance. As a result, plaintiffs take the position that since no inquiry was made by defendant prior to the issuance of its policy, the stipulation against chattel mortgages was thereby waived. An examination of the adjudicated eases discloses this contention to be without substantial foundation. In Boston Ins. Co. v. Hudson (C. C. A.) 11 F.(2d) 961 , action was brought on a California standard form fire insurance policy, containing a provision, as in the ease at bar, that the policy should be void, if the interest of the insured were other than unconditional and sole ownership. *43 The insurer or its -agent had notice, before loss, of breach of this condition. Nevertheless, the court held that there was no waiver of the breach because the policy provided that no representative of the insurer had power to waive any provision of the policy except by written…