Siegman v. Orion Ins. Co.

[535]

Opinion

FLEMING, J.

Leo Siegman, a wholesale diamond merchant, carried robbery insurance with Orion Insurance Company, Ltd., (Orion) which covered 80 percent of outside robbery losses but did. not cover any part of inside robbery losses. During the life of the policy Siegman was robbed of diamonds valued over $72,000. Orion refused to reimburse him for the loss contending that the robbery had not occurred outside his premises and therefore his losses were not within the coverage of the policy. The trial court found that Siegman had been robbed of one diamond outside his premises and awarded him 80 percent of its value. But the court also found that the balance of the losses from the robbery took place inside Siegman’s premises, and it concluded that these losses were not covered by the policy. Siegman appeals.

The issue is whether the principal losses from the robbery occurred inside or outside Siegman’s premises within the meaning and definition of the policy. The facts are undisputed. Siegman buys and sells annually a million dollars of cut, polished diamonds. Several times a year he travels to New York to buy merchandise at the Diamond Dealers Club, but he keeps none of his stock there. Seventy-five to 80 percent of his sales are made in Los Angeles, and the balance in Dallas, Houston, Minneapolis, and New York. Siegman always visits his customers, they never visit him. On visits to customers he carries part of his stock with him, and the balance he keeps in a safe which he visits several times a day. Siegman maintains his business records at home, and in his income tax returns he lists his home as his office. In 1966 he received mail and telephone calls at an answering service exchange on Hill Street in Los Angeles. He used a room at the answering service exchange to send out bills, and he sometimes met customers there. Beginning in January 1966 Siegman shared an office on Fifth Street in Los Angeles with one of his customers, Classic Manufacturing Company. Siegman’s name appeared on the front door. In a small, partitioned portion of the office Siegman kept his safe, a desk and chair, and jeweler’s scales. He paid no rent to Classic, but shared with it the cost of a burglar alarm system.

At 6 p.m. on 22 July 1966 Siegman was robbed at the Fifth Street office. He had opened his safe and gone into Classic’s portion of the office to show a diamond to an employee of Classic, when armed robbers entered, tied up Siegman and another, took the diamond Siegman was showing, emptied Classic’s safe, emptied Siegman’s safe, and then made good their escape.