Pan American World Airways, Inc. v. Aetna Casualty & Surety Co.
United States Court of Appeals for the Second Circuit
505 F.2d 989 (1974)
- Written by Sheryl McGrath, JD
Facts
In 1970, several insurance companies, including Aetna Casualty & Surety Co. (collectively, the insurance companies) (defendants) provided all-risk insurance to Pan American World Airways, Inc. (Pan Am) (plaintiff). The contracts insured Pan Am against physical loss, but the contracts contained an insurance exclusion for damage resulting from usurped power, war, insurrection, riots, and other similar events. The exclusion did not reference the word “hijack.” In September 1970, two members of the Popular Front for the Liberation of Palestine hijacked a Pan Am plane that was scheduled to fly from Brussels to New York. The hijackers forced the pilots to fly first to Beirut, where they picked up an explosives expert. The hijackers then forced the pilots to fly to Cairo. In Cairo, the passengers were evacuated. The hijackers then used explosives to demolish the plane. Pan Am submitted insurance claims for the loss of the plane; the insurance companies sought to avoid coverage under the exclusion. The district court found that the insurance companies must cover the loss. The insurance companies appealed.
Rule of Law
Issue
Holding and Reasoning (Hays, J.)
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