4. Victory Container Corporation was owned by the three Radin brothers. Two of t

Question

4. Victory Container Corporation was owned by the three Radin brothers. Two of those brothers also owned the Warrensburg Paper and Board Corporation. Victory had no direct ownership of the War-rensburg plant, however. Nevertheless, Victory took out a fire insurance policy on the Warrens-burg plant. When the Warrensburg property was damaged, Victory attempted to collect under the policy. Did Victory have an insurable interest in the Warrensburg property? Explain. [See: Victory Container Corporation v. Calvert Fire Insurance Company, 486 N.Y.S.2d 211 (NY).]

Explanation / Answer

Solution: Victory Container Corporation does not have any ownership of the War-rensburg plant and hence, no insurable interest. To the Warrensburg property, Victory Container Corporation has the similar legal status, what any independent third party will have. Therefore, Victoria's claim will not be entertained and will be declined.

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