Pacific Coast Engineering Co. v. St. Paul Fire & Marine Insurance

Opinion

AGEE, J.

Plaintiff manufactures and fabricates various steel products at its plant in Alameda. The nine insurance companies who are the defendants herein issued policies of insurance covering plaintiff for loss sustained by fire and explosion. Attached to each of the nine policies is an identical endorsement entitled “Business Interruption Form No. 8,” hereafter referred to as “Form No. 8.”

Plaintiff contracted to construct a steel barge to be delivered at its plant on March 19, 1964, for towage to Seattle. On this date, with less than one hour’s work remaining to complete and deliver it to the tugboat, an explosion and fire occurred on the barge.

Plaintiff received full payment under its insurance policies for the

physical

damage resulting from the explosion and fire, including the damage done to the barge, and liability therefor is not in dispute.

[273]

The dispute herein is limited to the nature and extent of defendants’ liability under Form No. 8. Plaintiff’s complaint in the within action separately designates the items of its claim as (a), (b), (c), (d) and (e). Item (a) is in the amount of $4,317.24 and is alleged tobe for “Loss of time for cleanup.”

Prior to the commencement of trial the parties filed a written stipulation which in part recites that “about 1:50 p.m., on March 19, 1964, an explosion and fire occurred on said barge,” and “that operations at plaintiff’s said plant were suspended for a period of

two days

to complete said clean-up, and said plant again

resumed full operations on March 21, 1964.”

(Italics added.) It was further stipulated that “defendants concede the amount of and liability for Item (a) of plaintiff’s claim.” Items (b), (c), (d) and (e) remain in dispute.

Item (b) is for additional loan interest expense of $3,247.22 incurred by plaintiff as the result of the delay in receiving the final installment of $114,608, which installment was not paid by the customer until delivery of the barge.