Lutz v. Royal Insurance

Citations

• 205 Pa. 159
• 54 A. 721
• 1903 Pa. LEXIS 537

Syllabus

<p>Insurance — Fire insurance — Dangerous explosive — Custom of trade.</p> <p>A firm engaged in the business of dealing in photograph supplies had a place of business in the central part of a large city where they rented certain floors of a building. On the building was a policy of fire insurance which provided that the entire policy should be void, “ if (any usage or custom of trade to the contrary notwithstanding) there be kept, used or allowed on the above described premises gunpowder .... or other explosives.” In addition to this printed condition there was the typewritten provision: “ Privilege to be occupied as at present, or for purposes not more hazardous.” It was customary for dealers in photographic supplies in this city to put up and sell in small packages a certain flash light powder. It was not customary for dealers to manufacture it on the premises where sold. There was an explosion in the building, and this was immediately followed by a lire which destroyed the building. It appeared that the firm in question not only dealt in and sold the flash light powder, but also manufactured it in the portion of the building which they occupied. There was no direct evidence that the insurance company knew of the manufacture of flash light powder on the premises when the policy was issued. The evidence showed that the powder was a high explosive. The evidence in favor of the insurance company was practically undisputed. Held, in an action by the owners of the building to recover on the insurance policy that the court should have given binding instructions for the defendant.</p>