Continental Insurance v. Dunne (226 F.2d 471, 1955)

DENMAN, Chief Judge..

This is an appeal from a judgment of the District Court allowing appellees, citizens of California, to recover under their fire insurance policies issued by The Continental Insurance Company, a New York corporation. The policies were executed in California and the California law controls their interpretation.

One of the insurance company’s contentions is that the court erred in holding it has not discharged its liability on several policies covering a fire in a one-story frame building numbered 1637 Howard Street in San Francisco by a so-called release signed by the insured for the.payment by it to the insured of the amount of $500.00, the total coverage of one of them. The release was a printed indorsement on a check prepared by the insurer as follows:

“In consideration of the payment hereby made, the Continental Insurance Company is released'and forever discharged from any■ further claim by reason of the loss describe