Vlastos v. Sumitomo Marine & Fire Insurance Company

Evelyn Vlastos (plaintiff) owned a four-story Pittsburgh building housing a bar and luncheonette on the first floor, an unrelated massage-parlor business on the second and part of the third floor, a janitor's residence on part of the third floor, and Vlastos's own storage and office on the fourth; her insurance policy with Sumitomo (defendant) included a warranty stating the third floor was "occupied as Janitor's residence." After an April 1980 fire, Sumitomo refused Vlastos's claim, arguing she'd breached the warranty by letting the third floor be used for something beyond a janitor's residence. The district court instructed the jury that the warranty required exclusive use of the third floor as a janitor's residence, the jury found Vlastos breached the warranty, and she appealed.