Carideo v. Phoenix Assurance Company of New York

• Decision Date: 04 November 1971
• Docket Number: No. 19381.,19381.
• Citation: 450 F.2d 779
• Parties: Charles CARIDEO, Jr., Assignee, v. The PHOENIX ASSURANCE COMPANY OF NEW YORK et al., Appellant.
• Court: U.S. Court of Appeals — Third Circuit

450 F.2d 779 (1971)

Charles CARIDEO, Jr., Assignee, v. The PHOENIX ASSURANCE COMPANY OF NEW YORK et al., Appellant.

No. 19381.

United States Court of Appeals, Third Circuit.

Argued October 5, 1971.

Decided November 4, 1971.

James B. Doak, LaBrum & Doak, Philadelphia, Pa., for appellant.

James F. Young, Krusen, Evans & Byrne, Philadelphia, Pa. (Raymond T. Letulle, John C. Detweiler, Philadelphia, Pa., on the brief), for appellee.

Before McLAUGHLIN, GANEY and ADAMS, Circuit Judges.

OPINION OF THE COURT

PER CURIAM:

In 1966 Charles Carideo, Sr., now deceased, was having a yacht built for him by Broward Marine, Inc., at Fort Lauderdale, Florida. He was paying for it as the work advanced. On October 25, 1966 he had paid Broward $49,000. There was insurance by The Phoenix Company on the yacht covering Carideo and Broward as their interest appeared which coverage included protection from loss by fire. On October 25th, 1966 when the yacht was substantially completed, subject to tests as to proper construction, etc., Mr. Carideo spoke by telephone to Mr. Zinman, his insurance broker, requesting insurance on the yacht of about $60,000. Zinman made a note of the date, of what was required and what was to be requested of the Federal Insurance Company, the proposed insurer. Zinman's memorandum also named "Steve Voorhees" an underwriter for Chubb and Son, the Federal Insurance agent, as the person to contact. Later the same day Miss Whitehall, an employee of Mr. Zinman's firm, at his direction requested Mr. Voorhees, handling the new insurance for Chubb and Son the Federal Insurance Company agent, to "Please bind pending details" in the sum of $60,000. Mr. Voorhees was given a copy of that request. Mr. Voorhees himself made a memorandum of the talk stating that Mr. Zinman had called and requested a binder for $60,000 on the yacht in question. Mr. Voorhees stated in his memorandum "eff" (effective) Oct. 25, 1966 and that it was "O.K." Miss Whitehall made a handwritten note on the Zinman copy of the confirming memorandum which was in evidence and reads "Spoke to Voorhees — O.K. — he will bind."

Thereafter, on November 3, 1966, Mr. Carideo, Sr., was given his Admeasurement Certificate by the United States Treasury, Bureau of Customs, identifying him as owner, master or agent of the yacht. That certificate was duly filed. Following that, on November 16, 1966, Mr. Carideo filed various ownership documents with the Bureau of Customs, Philadelphia, Pa., all of which attested his ownership of the yacht. Two days later there was a bad fire at the yacht builders marina, Fort Lauderdale, which among other damage destroyed the Carideo yacht.¹

The Phoenix Assurance Company has paid its full coverage to the Carideo interests and to Broward. That payment was made subject to the continuance of the present action by Phoenix in order to determine whether there was insurance coverage from fire by both Phoenix and Federal on the Carideo...