Morrow Crane Co. v. Affiliated FM Insurance (686 F. Supp. 265, 1987)

OPINION

MARSH, District Judge.

Plaintiff Morrow Crane filed this claim in admiralty seeking recovery from Affiliated FM Insurance Company under a marine insurance cargo policy. This court has jurisdiction pursuant to 28 U.S.C. § 1333 (1982). A bench trial was held July 29, 1987. This opinion constitutes my findings of fact and conclusions of law pursuant to Fed.R.Civ.P. 52 in favor of the defendant. FACTS

Morrow Crane is a dealer in heavy machinery, principally large cranes, and is headquartered in Salem, Oregon. Defendant Affiliated FM Insurance Company (hereinafter “FM”) is an insurance company headquartered in Rhode Island that writes marine insurance in various states including Oregon.

On February 9, 1983, FM issued an open marine cargo policy insuring plaintiff against physical loss of or damage to the goods and merchandise of plaintiff which consisted principally of cranes, crane parts and crane booms subject to various conditions and exclusions. This form of policy provides coverage for loss or damage to goods during shipment and for a reasonable period thereafter under “warehouse to warehouse” coverage. The insured triggers coverage of the policy by giving notification through a “declaration” to the insurer of the shipment and pertinent details concerning it. Under the terms of this policy, all such declarations were to be made to Northwestern Risk Specialists, an agent of the insurer. A normal practice under such a policy was to make the declaration in the month following the month in which the shipments for the account of the insured are made.

This particular claim stems from a shipment on November 1, 1984 of cranes purchased by plaintiff from a German manufacturer. Morrow Crane had presold the cranes and needed to deliver them to their customer by December 15, 1984. Morrow Crane had a contract with Zuest