American Fire Insurance v. Brighton Cotton Manufacturing Co.

Citations

• 125 Ill. 131
• 17 N.E. 771

Syllabus

<p>1, Insurance—condition that premises shall not “become vacant and unoccupied”—construed. A policy of insurance upon a cotton-factory contained a condition that if the assured “shall allow the building herein covered to become vacant and unoccupied, the policy shall become null and void.” In a suit to recover for a loss by fire, it appeared that work in the factory, in many of the departments, was in temporary suspension for purposes relating to supplies, etc. Most of the hands were discharged until work should be resumed, which was expected to be in a short time. But a number of employes were retained, and were engaged in and about their usual work in the factory, up to and on the day of the fire. All the plant and much valuable material, and some manufactured goods, were in the building. One of the proprietors was either in or at the building when the fire was discovered, and came there with money to pay persons engaged as laborers about the mill. A night and day watchman were retained, and performed their usual duties. It was held, the property was at no time before the fire “vacant and unoccupied,” within the meaning of the policy.</p> <p>2. Same—condition that manufacturing establishment shall not cease to be operated—construed. A policy of insurance of a manufacturing establishment contained a condition that if the establishment should cease to be operated without special agreement indorsed thereon, the insurance should cease. There was indorsed on the policy when it was delivered, “other insurance permitted without notice, and permission granted to set up and operate machinery, and to make such repairs and alterations as may be necessary to keep the premises in good order during the time of this policy, without prejudice thereto:” Held, that the condition and this permission were to be construed together, as constituting the contract of the parties, and when so construed it showed an understanding that there might be a temporary suspension in the operation