Kurihara v. Detroit Fire & Marine Insurance

STURTEVANT, J.

The plaintiffs commenced an action to recover on an insurance policy. The judgment of the trial court was entered in favor of the defendant and the plaintiffs have appealed. The facts were fully stated in the pleadings and the court found:

“1. That defendant, The Detroit Fire and Marine Insurance Company, a corporation, is now, and at all times since its incorporation has been, a corporation organized and existing under and by virtue of the laws of the State of Michigan, and at all times material to this action has been, and now is, duly authorized to do business in the State of California.

“2. That on or about the 1st day of May, 1920, defendant executed and delivered to plaintiff, T. Masuko a fire insurance policy No. 113343 insuring said T. Masuko as ‘T. Masuko, doing business as Miyako Company, ’ a copy of which insurance policy is attached to the original complaint herein, and therein marked Exhibit ‘A’; that said policy of insurance was by its terms to run for the period of one. year from and after the 1st day of May, 1920; that at some time prior to the 1st day of May, 1921, said policy was extended so as to cover as well the period of one year beginning upon the 1st day of May, 1921.

“3. That from the year 1912 until the year 1917, the store referred to in said policy of insurance was owned and

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conducted by plaintiff T. Masuko, doing business under the name and style of ‘Masuko & Company’; that at the expiration of said period, plaintiff, T. Masuko, was adjudged a bankrupt, and his entire stock of goods, together with the lease which he held upon said store, were purchased by plaintiff, K. Kurihara; that said K. Kurihara knew nothing about the running of such a merchandise store.

“4. That on or about the 1st day of January, 1920, plaintiff, T. Masuko, began to work for plaintiff, K. Kurihara, upon a salary basis; that about two months thereafter plaintiffs, T. Masuko and K. Kurihara, entered into an agreement in writing, whereby the business at said store should be conducted under the name of Miyako Company, plaintiff, T. Masuko, receiving $50.00 a month as his salary and one-half of the profits of said business; that under the terms Of said agreement said plaintiff, T. Masuko, was to be the manager of said business and devote his afternoons to it; that in case of loss by fire, it was agreed that such a loss should be shared one-half by plaintiff, T. Masuko, and one-half by plaintiff, K. Kurihara; that Masuko was bound by said agreement to put back into the business for the bene-, fit of the store his one-half of the profits which might be realized, it being understood that he should become a partner in the business when one-half of the value of the goods had been so paid in; the profits of the business amounted on an average of $7.50 per day up to the 28th day of December, 1920; that upon said date a fire occurred in said store and all of the goods therein were wholly destroyed by said fire.