Home Insurance v. Exchange Lemon Products Co.

On April 23, 1946, plaintiff The Home Insurance Company issued to the defendant Exchange Lemon Products Company a transportation insurance policy whereby, subject to the terms and conditions of the policy, plaintiff insured defendant against loss or damage to its products. On various dates between May 3, 1950, and August 22, 1950, defendant shipped certain citrus by-products from Corona, California, consigned to the defendant for “storage in transit” at Crooks Terminal Warehouse, Kansas City, Missouri. For a period of approximately one year these products were maintained in said warehouse for the account of defendant and were still awaiting further shipping orders when, on July 13, 1951, and while the policy was in full force and effect, they were totally destroyed by a flood. Defendant filed a timely proof of loss with the plaintiff and demanded $161,-991.63 as the value of the products destroyed. Plaintiff refused payment and now seeks from this court a declaration of rights, duties and liabilities of the parties under the policy. Defendant has filed a counterclaim and prays for a judgment in the amount of its claimed loss with interest and costs.

It is plaintiff’s contention…