Chute v. North River Insurance Company
Supreme Court of Minnesota
172 Minn.13 (1927)
Relevant factsFree
Bessie Chute (plaintiff) held an all-risk policy from North River Insurance Company (defendant) covering jewelry and furs "during transportation or otherwise," while explicitly excluding certain internal or wear-related damage. Chute's $2,000 fire opal developed a crack while the policy was in force, but the crack resulted purely from an internal defect in the stone, not from any outside force. The trial court sustained North River's demurrer rejecting the claim, and Chute appealed.
IssueFree
Whether a policyholder can recover for damages arising only from an inherent defect or tendency in insured property and not from an extraneous and fortuitous cause.
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