Bonnie v. Maryland Casualty Co.

• Decision Date: 21 November 1939
• Citation: 280 Ky. 568
• Parties: Bonnie et al. v. Maryland Casualty Co.
• Court: United States State Supreme Court — District of Kentucky

280 Ky. 568

Bonnie et al. v. Maryland Casualty Co.

Court of Appeals of Kentucky. Common Pleas Branch, Fourth Division.

November 21, 1939.

1. Insurance. — An insurer, which paid insured on sprinkler leakage policy for damage to insured's goods caused when sprinkler system in building other than one occupied by insured burst and water seeped into sub-basement of insured's building, was entitled to be subrogated to claim of insured against occupants of building in which sprinkler system burst, if insurer was liable for loss under policy, but not otherwise.

2. Insurance. — An insurer on sprinkler leakage policy was not entitled to be subrogated to claim of insured against occupants of a nearby building for damage to insured's goods caused when sprinkler system in nearby building burst and water seeped into sub-basement of insured's building, notwithstanding insurer paid insured for amount of loss, where policy was intended to cover only damage resulting from sprinkler system in building occupied by insured, and not from sprinkler system in any other building.

3. Insurance. — The rule that language of insurance policies will be construed most favorably toward insured and beneficiaries as against insurer has no application in a case where court has no doubt as to interpretation to be given policy.

Appeal from Jefferson Circuit Court.

Squire R. Ogden, Gordon, Laurent, Ogden & Galphin, Wilson W. Wyatt, and Peter, Heyburn, Marshall & Wyatt for appellants.

Attkisson & Attkisson and Eugene R. Attkisson for appellee.

Before Eugene Hubbard, Judge.

OPINION OF THE COURT BY JUDGE CAMMACK.

Reversing.

The appellee, Maryland Casualty Company, hereinafter referred to as the Insurance Company, issued a policy of sprinkler leakage insurance to the Kentucky Grocery Company in January, 1936. The Grocery Company's place of business is 121 West Main Street, Louisville. The appellants, Bonnie Brothers, were the lessees of a vacant building at 127 West Main. Both of these buildings were equipped with a sprinkler system. There were two buildings between the one occupied by the Grocery Company and that occupied by Bonnie Brothers. On February 24, 1936, the valve which connected a 6 inch water pipe coming in from the street with the sprinkler system froze and burst in the Bonnie Brothers building. This valve, which had been cut off, was some 15 feet below the street level. Water seeped from the sub-basement of the Bonnie Brothers building into the sub-basement of the building occupied by the Grocery Company, thereby causing considerable damage to the company's stock of goods.

The Insurance Company settled with the Grocery Company for the damage done by the seepage of the water and received an assignment therefrom subrogating it to all rights against the party who might be held liable for the loss. The Insurance Company then filed this action against Bonnie Brothers seeking to recover the $1,941.81 paid the Grocery Company. Bonnie Brothers answered denying the allegations of the petition. They moved for a peremptory instruction at the close of the plaintiff's evidence, and also at the conclusion of all the evidence. These motions were overruled. The jury found for the Insurance Company and judgment was entered accordingly; hence this appeal.

Reversal is urged upon the following grounds: (1) The evidence is not sufficient to establish that Bonnie Brothers were negligent; and (2) the Insurance Company has no right as a matter of law to maintain this action. Having reached the conclusion that the appellants' second contention is well grounded, insofar as the coverage of the policy is concerned, it becomes unnecessary to discuss the first ground urged for reversal.

If the Insurance Company was not liable for the loss under the policy of sprinkler leakage insurance, it goes without saying that it could not be subrogated to any claim of the Grocery Company ...