Shrv Teletype Coin Exchange, Inc. v. Commercial Union Ins. Co. of New York

• Decision Date: 27 September 1966
• Docket Number: No. 10648,10648
• Citation: 191 So.2d 208
• Parties: SHRV TELETYPE COIN EXCHANGE, INC., Plaintiff-Appellant, v. COMMERCIAL UNION INSURANCE COMPANY OF NEW YORK et al., Defendants-Appellees.
• Court: Court of Appeal of Louisiana — District of US

Page 208

191 So.2d 208

SHRV TELETYPE COIN EXCHANGE, INC., Plaintiff-Appellant, v. COMMERCIAL UNION INSURANCE COMPANY OF NEW YORK et al Defendants-Appellees.

No. 10648.

Court of Appeal of Louisiana, Second Circuit.

Sept. 27, 1966.

Hal V. Lyons, Shreveport, for appellant.

Lunn, Irion, Switzer, Trichel & Johnson, Shreveport, for Commercial Union Ins. Co. of New York.

Mayer & Smith, Shreveport, for Continental Casualty Co.

Before HARDY, GLADNEY and AYRES, JJ.

HARDY, Judge.

This is an action by plaintiff seeking to recover the value of a collection of rare coins which were lost either by theft or 'mysterious disappearance.' Named as defendants were plaintiff's insurer, Commercial Union Insurance Company of New York, and Continental Casualty Company as the errors and omissions liability insurance carrier of plaintiff's insurance agent. From judgment in favor of defendants rejecting plaintiff's demands, it has appealed.

The factual circumstances giving rise to this action may be briefly related. Plaintiff corporation is engaged in the business of dealing in rare and old coins. Thomas A. Bridges is the President of the corporation and his daughter, Andrea McFarland, is an employee. These named defendants, as employees of plaintiff, attended a convention of coin dealers held in Cleveland, Ohio, beginning on or about August 18, 1964. On their arrival in Cleveland Mr. Bridges and his daughter registered at the Sheraton Hotel in which they were assigned to separate rooms. In their possession on arrival was a collection of coins which they valued at something in excess of $42,000.00. At the time of arrival and registration at the Sheraton Hotel it was discovered that no safety vault or other secured depositary for the coins was available, and, accordingly, they were placed in the closet of Mrs. McFarland's room. Mr. Bridges and his daughter left the room, after locking the door, and upon their return from dinner immediately discovered that the coins were missing.

Plaintiff contended that Commercial Union as its insurer was primarily liable for the loss to the maximum extent of the policy provision in the sum of $25,000.00. Alternatively, it was urged that Continental Casualty was liable in the amount of $25,000.00 by reason of its coverage of liability resulting from errors and omissions due to the negligence of plaintiff's insurance agent, Andrew Querbes, a member of a Shreveport firm engaged in the general insurance business.

Commercial Union defended on the ground that the nature of plaintiff's loss was specifically excluded from coverage under a provision of the policy in effect. In brief before this court counsel for plaintiff has conceded the validity of the defense asserted by Commercial Union, and, accordingly, the claim against this defendant is considered to be abandoned, and, therefore, is not before the court as an issue on this appeal. It may be observed, en...