Ferguson v. Phoenix Assurance Company of New York case brief

Ferguson v. Phoenix Assurance Company of New York case brief summary
370 P.2d 379 (1962)

CASE SYNOPSIS

Appellant insurance company sought review of a decision in the Morris District Court (Kansas) allowing full recovery for plaintiff's loss as a result of a burglary of money contained in plaintiff's safe, arguing that the loss was clearly excluded in the policy.

CASE FACTS
Appellant insurance company disputed a claim of appellee insured store owner for the recovery of money stolen from the store safe. In a lawsuit brought by appellee for recovery under its insurance policy, appellant contended that evidence of forced entry on both the exterior and interior doors of the safe was required for coverage under a policy provision. Despite the provision, the trial court found for appellee and allowed full recovery for the stolen money.

DISCUSSION

• The court affirmed, because the purpose of the policy provision was to establish the use of actual force and violence in entering the safe and assist in the avoidance of fraudulent claims. 
• Because the facts admitted at trial established the use of force and violence, the court found the technical policy provision was designed to defeat just claims under the policy and contravened the public policy of the state.

CONCLUSION
The court affirmed the trial court's decision, finding the insurance policy provision requiring evidence of forced entry on both the exterior and interior doors to a safe was designed to defeat recovery on a just claim under the policy and was against public policy.

Recommended Supplements and Study Aids for Property Law

Shop for Law School Course Materials.