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Glens Falls Ins. Co. v. Covert

Court of Civil Appeals of Texas, Ninth District, Beaumont

July 10, 1975

No. 7714

Opinion

 [*222]  This is an action to recover under an insurance policy covering plaintiff's business and premises. Trial was before the court and judgment was rendered for plaintiff. Findings of fact and conclusions of law were filed. The parties will be referred to here as they were in the trial court.

All material facts are uncontroverted. George Covert, d/b/a Covert Automobile Company, was insured under a policy of insurance issued by defendant, Glens Falls Insurance Company. The policy, known as a Commercial Property Policy Form, contained these provisions:

"(a) 7. Perils Insured: THIS POLICY INSURES AGAINST ALL RISKS OF PHYSICAL LOSS OR DAMAGE TO THE ABOVE DESCRIBED PROPERTY EXCEPT AS HEREINAFTER PROVIDED, including general overage and salvage charges.

"(b) 8. Perils Excluded: This Policy Does Not Insure:

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"(d) Loss or damage caused by or resulting from delay, loss of market, loss of use, bankruptcy, foreclosure, execution or similar proceedings, wear, tear, moth, vermin, deterioration, inherent vice, latent defect or mechanical breakdown."

The trial court made these [**2]  findings of fact:

"1. The incident giving rise to this suit occurred on December 6, 1968, when 81 vehicle safety stabilizers owned by plaintiff fell from a storage area to the floor of a building owned by plaintiff.

"2. The involved vehicle safety stabilizers are sealed units which cannot be inspected for internal damage.

"3. It is not known whether any of the involved units received internal damage.

"4. On December 17, 1968, the manufacturer of the stabilizers withdrew its warranty that the products were free of defects, and plaintiff then decided not to sell the units without the manufacturer's warranty and made a claim against the  [*223]  defendant under the insurance policy mentioned below.

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526 S.W.2d 222 *; 1975 Tex. App. LEXIS 3031 **

Glens Falls Insurance Company, Appellant v. George Covert, d/b/a Covert Automobile Company, Appellee

Subsequent History:  [**1]   N.R.E.

CORE TERMS

insurance policy, insured, physical loss, manufacturer's, stabilizers, warranty, vehicle safety, fact finding, trial court, damaged, parties, RISKS, tests, words

Insurance Law, Claim, Contract & Practice Issues, Policy Interpretation, General Overview