Murphy v. Frank B. Hall & Co. (228 A.D. 415, 1930)

Hill, J.

This action is brought to recover the expenses incurred in securing a settlement of the fire loss on fifteen barges which burned at their moorings in the Hudson river. They had been insured in English companies not authorized to transact business in New York State. The insurance was secured through defendant acting as plaintiff’s agent. Plaintiff had purchased twenty-nine barges from the United States government, partly on credit. He commissioned the defendant to obtain insurance on fifteen of the barges, naming a very low rate of premium, the policies not to contain the usual requirement as to watchmen on the boats. Defendant communicated with brokers in London, which seems to have been the only market where insurance of the kind and at the rate mentioned could be obtained. Shortly, plaintiff was advised by defendant that the insurance of $180,000 had been negotiated with “ Lloyds and /or companies per Sedgwick, Collins