375 F.2d 670 (4th Cir. 1967), 10824, Cram v. Sun Ins. Office, Limited

Docket Nº:10824, 10825.
Citation:375 F.2d 670
Party Name:Henry S. CRAM, Appellant, v. SUN INSURANCE OFFICE, LTD., Appellee. Robert S. WAHAB, Jr., Appellant, v. SUN INSURANCE OFFICE, LTD., Appellee.
Case Date:March 29, 1967
Court:United States Courts of Appeals, Court of Appeals for the Fourth Circuit
 
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Page 670

375 F.2d 670 (4th Cir. 1967)

Henry S. CRAM, Appellant,

v.

SUN INSURANCE OFFICE, LTD., Appellee.

Robert S. WAHAB, Jr., Appellant,

v.

SUN INSURANCE OFFICE, LTD., Appellee.

Nos. 10824, 10825.

United States Court of Appeals, Fourth Circuit.

March 29, 1967

         Argued Feb. 8, 1967.

Page 671

         deRosset Myers, Charleston, S.C. (Henry B. Smythe, Pritchard, Myers & Morrison, and Buist, Buist, Smythe & Smythe, Charleston, S.C., on brief), for appellant, Henry S. Cram.

         Henry B. Smythe, Charleston, S.C. (Pritchard, Myers & Morrison, and Buist, Buist, Smythe & Smythe, Charleston, S.C., on brief), for appellant, Robert .s, Wahab, Jr.

         Nathaniel L. Barnwell, Charleston, S.C. (Ben Scott Whaley, and Barnwell, Whaley, Stevenson & Patterson, Charleston, S.C., on brief), for appellee.

         Before HAYNSWORTH, Chief Judge, and J. SPENCER BELL and WINTER, Circuit Judges.

         J. SPENCER BELL, Circuit Judge:

         plaintiff, Henry S. Cram, Brought a

         Plaintiff, Henry S. Cram, brought a Insurance Office, Ltd., and Robert S. Wahab, Jr., to determine the rights and liabilities of the parties with regard to the loss of the yacht 'Buck's Club,' which was insured by Sun and which Cram had agreed to convey to Wahab. Jurisdiction is based on diversity of citizenship. Cram and Sun moved for summary judgment under Rule 56 of the Federal Rules of Civil Procedure based on the pleadings, written interrogatories, and affidavits. Cram and Wahab appeal from a district court order entering judgment for Sun in accordance with its motion under Rule 56.

         Cram, a resident of Bluffton, South Carolina, owned a yacht known as the 'Buck's Club,' which he wished to replace with a larger boat, and Wahab, a resident of Virginia Beach, Virginia,

Page 672

owned a yacht called the 'Recess,' which he desired to sell. Brought together by a mutual friend, one Captain Hester, Cram and Wahab met in Norfolk, Virginia, on November 24, 1964, and executed the following two agreements:

         'For and in consideration of $1.00 and other good and valuable considerations I hereby bargain, grant, sell, and convey all my right, title, and interest in one forty-one foot boat, now known as the 'Recess' and documented in the U.S. Customs House as No. 295136.

         'I warrant that this boat is free of all liens and encumbrances of all kinds.

         'Given under my hand this twenty-fourth day of November, 1964.

         (s)Robert S. Wahab, Jr. 957 Bobolink Drive Virginia

         Beach, Va.'

         'In part consideration of the sale to me of Documented Vessel No. 295136, I agree to assign all of my right, title, and interest in one 1962 Clayton 28 ft. Sea Skiff, now know as 'Buck's Club' to Robert S. Wahab, Jr.

         'I warrant that the said boat is free of all liens and encumbrances of all kinds and will be in operating condition when delivered.

         'Given under my hand this 24th day of November, 1964.

         (s) Henry S. Cram.'

         Cram paid Wahab $19,500.00 cash, which together with the 'Buck's Club' represented full consideration agreed upon for the 'Recess.' Cram then returned to South Carolina with the 'Recess' and proceeded to have necessary repairs made on 'Buck's Club' in order to put it in operating condition.

         After repairs on 'Buck's Club' had been completed, Cram notified Wahab of that fact. Wahab had originally intended to pick up the yacht in South Carolina but because of inclement weather decided not to do so. It was agreed that Cram would arrange for Captain Hester to deliver the yacht to Wahab in Virginia, with Wahab bearing the expense. There was no evidence that Hester had any authority to inspect and approve the condition of the 'Buck's Club' on behalf of Wahab. Hester took charge of the yacht on December 5, 1964, and shortly thereafter the yacht was completely destroyed by fire while in the Beaufort River in South Carolina.

         On June 18, 1964, Sun had issued to Cram a policy insuring the 'Buck's Club' for $12,200.00, the agreed valuation, and Cram had paid the full premium...

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