Steinbach

Appellees are seeking to enforce payment of an alleged liability on a marine insurance policy issued by appellant to insure a dredge known as the “Wishram”, which was destroyed while being towed from Nehalem Bay to Tillamook Bay, in the State of Oregon. Appellant denies liability because, as. it contends: (1) Appellees were not legal title holders of the dredge and had no insurable interest therein; (2) that there was a breach by appellees of an implied warranty of seaworthiness; (3) that misinformation was given and also a failure to disclose material facts concerning the risk at the time the policy was executed.

The main question for decision is the alleged lack of insurable interest in the dredge-at the time the policy was issued. The trial court found appellees had such an interest.

Appellees are the wives of John and David Steinbach, brothers engaged in the operation of a machine shop. The brothers,, together with one Captain Hugh Corgan, purchased the dredge from the United1 States government. The purchase money of the dredge, repair bills and wages for Captain Corgan and his són, wás advanced by the Steinbach Brothers in the sum of' $9,446.26. Of this amount $2,925 was…