American Iron & Mach. Works Co. v. Insurance Co. of North America
| Decision Date | 25 September 1962 |
| Docket Number | No. 39770,39770 |
| Citation | 375 P.2d 873,1962 OK 197 |
| Parties | AMERICAN IRON & MACHINE WORKS COMPANY, Inc., Plaintiff-in-Error, v. INSURANCE COMPANY OF NORTH AMERICA, a corporation, Defendant-in-Error. |
| Court | Oklahoma Supreme Court |
Syllabus by the Court.
1. Where a case is presented on an agreed stipulation of facts, the only question that may be considered is whether they require a judgment for the plaintiff as a matter of law.
2. Parties to an insurance contract are at liberty to contract for insurance to cover such risks as they see fit and are bound by terms of contracts and courts will not undertake to rewrite the terms thereof.
3. The construction of an insurance policy should be a natural and reasonable one, fairly construed to effectuate its purpose, and viewed in the light of common sense so as not to bring about an absurd result.
Appeal from District Court of Oklahoma County; Wm. Fogg, Judge.
Action by American Iron and Machine Works Company, Inc., as plaintiff, against the Insurance Company of North America, as defendant, on an insurance policy. Judgment for the defendant. Plaintiff appeals. Affirmed.
Withington, Shirk, Nichols & Work, by William J. Robinson, Oklahoma City, for plaintiff in error.
Monnet, Hayes, Bullis, Grubb & Thompson, by Glenn H. Grubb, Oklahoma City, for defendant in error.
Parties will be referred to as in the trial court.
Plaintiff took out an insurance policy with the defendant. It was an 'Industrial Machinery and Tool Dealers' policy and covered the plaintiff's stock of goods. This included a portable slush pump. It also covered 'all risk of physical loss or damage' with certain exceptions. This portable slush pump was damaged by being exposed to freezing temperatures and plaintiff brought suit against defendant on its policy alleging damages to the extent of $3,233.96. The defendant denied liability under the policy because of the 'Losses Not Covered' provision of the policy which is as follows:
'This policy does not insure against loss or damage caused by or resulting from:
* * *
* * *
The cause was tried to the court without a jury on an agreed stipulation of facts. Paragraph 3 of the stipulation provided as follows:
'That on the 3rd day of January, 1959, and for several days preceding said date, freezing occurred in the atmosphere of the location of the said portable slush pump which caused direct damage to the parts and mechanism of the said portable slush pump.'
It is presumed that the freezing took place in Oklahoma.
The question in this lawsuit is whether the foregoing exception exempted the defendant from liability. We think it does.
It is a matter of common knowledge that temperatures are never static in Oklahoma. Such being the case, the trial court was justified in deciding that the damage to plaintiff's pump was the result of a change in temperature. 15 O.S.1961 § 160, is as follows:
'Words to be taken in ordinary sense--Exceptions.--The words of a contract are to be understood in their ordinary and popular sense, rather than according to their strict legal meaning, unless used by the parties in a technical sense, or unless a special meaning is given to them by usage, in which case the latter must be followed.'
Under this section the policy is quite plain that any loss from any change in temperature was not to be compensated for.
The plaintiff raises three propositions, which are:
The policy is so plain on the provisions of ...
To continue reading
Request your trial
-
Max True Plastering Co. v. U.S. Fidelity and Guar. Co.
...Paul Ins. Co., 812 P.2d 372, 376 (Okla.1991); Wilson v. Travelers Ins. Co., see note 8, supra; American Iron & Mach. Works Co. v. Insurance Co. of N. America, 375 P.2d 873, 875 (Okla.1962).23 Phillips v. Estate of Greenfield, 859 P.2d 1101, 1104 (Okla.1993); Torres v. Kansas City Fire & Mar......
-
Dodson v. St. Paul Ins. Co.
...56 P.2d 138 (1936); Cities Service Oil Co. v. Geolograph Co., 208 Okla. 179, 254 P.2d 775 (1953); American Iron & Mach. Works Co. v. Ins. Co. of North America, 375 P.2d 873 (Okla.1962); Mercury Inv. Co. v. F.W. Woolworth Co., 706 P.2d 523, 529 (Okla.1985). See generally, 44 C.J.S. Insurance......
-
Hensley v. State Farm Fire & Cas. Co.
...Bituminous Cas. Corp. v. Cowen Const., Inc., 2002 OK 34, ¶ 9, 55 P.3d 1030, 1033, citing American Iron & Machine Works Co., Inc. v. Insurance Company of North America, 1962 OK 197, 375 P.2d 873 (Syllabus by the Court) and Torres v. Sentry Insurance, 1976 OK 195, 558 P.2d 400, 401.45 Bitumin......
-
Johnson v. CSAA Gen. Ins. Co.
..., 1976 OK 195, ¶ 7, 558 P.2d 400 ; Wiley v. Travelers Ins. Co. , 1974 OK 147, ¶ 16, 534 P.2d 1293 ; American Iron & Mach. Works Co., Inc. v. Insurance Co. of North America , 1962 OK 197, ¶ 5, 375 P.2d 873.A meaning assigned by the trial court to an insurance contract and its terms may be ba......