Bole v. New Hampshire Fire Ins.

Citations

• 159 Pa. 53
• 28 A. 205
• 1893 Pa. LEXIS 1476

Syllabus

<p>Contract — Construction—Doubtful words — Surrounding circumstances.</p> <p>Words in a contract which have no fixed technical meaning should be taken in their natural and obvious sense. A provision capable of two or more meanings should be construed most strongly against him whose undertaking it is, and the circumstances surrounding the parties when the contract was made and affecting the subject to which it relates form a sort of context, that may be resorted to in doubtful cases to aid in arriving at tiie meaning of the contract.</p> <p>Fire insurance — Covenants—Operation of factory.</p> <p>A policy of fire insurance on a manufacturing establishment provided that the policy should be void if the factory should “ cease to be operated for more than ten consecutive days.” The policy was a renewal policy on a manufacturing establishment, which at the time of the renewal was in tire hands of an assignee for creditors. On or about the day on which the old policy expired, the insurance broker through whom it had been obtained visited the premises to see about its renewal. The machinery was not then in operation and had not been for some days, but the premises were actually occupied by the foreman, who was engaged in putting together and making sale of engines and other articles belonging to the assigned estate. The broker renewed the policies for an amount then agreed upon and the premiums were paid. After being occupied in this way for several months, a fire occurred. Held, that the factory had not ceased to be operated within the meaning of the policy, and that the assignee was entitled to recover the value of the property insured.</p>