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International Products Co. v. Erie Railroad Co.
New York Court of Appeals
244 N.Y. 331, 155 N.E. 662 (1927)
The plaintiff was expecting a shipment of goods and he arranged with the defendants to receive and store the goods upon their arrival. The plaintiff wanted to insure the goods after they arrived and asked the defendants where the goods were to be stored so the plaintiff could obtain insurance. The defendants told the plaintiff that the goods were stored in Dock F. Upon hearing this, the plaintiff reasonably inferred that the goods had already arrived. Consequently, the plaintiff obtained insurance on that basis. However, the goods had in fact not arrived and when they did, they were actually stored in Dock D. Subsequently, they were destroyed by fire and the plaintiff was unable to obtain compensation from the insurance company because it did not describe the goods’ location properly. The plaintiff brought suit. The trial court entered a directed verdict for the plaintiff and the appellate court affirmed. The defendants appealed.
Rule of Law
Holding and Reasoning (Andrews, J.)
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