Court of Appeals of New York
138 N.E. 414 (1923)
William Siegel (plaintiff) purchased furniture from Spear & Co. (Spear) (defendant). In May 1918, Siegel sought to store his furniture at Spear’s storehouse during the summer. Spear’s credit man informed Siegel that Spear would store the furniture for free. He also promised he would obtain insurance for the furniture on Siegel’s behalf. Siegel thereafter delivered the furniture to Spear. Spear ultimately failed to obtain the insurance. On May 15, 1918, Spear’s storehouse containing the furniture was destroyed by fire. Siegel brought suit to recover his losses caused by Spear’s failure to insure the furniture. The trial court ruled in Siegel’s favor. The Appellate Term affirmed. The Appellate Division also affirmed. Spear appealed, arguing that there was no consideration for Spear’s promise to insure the furniture.
Rule of Law
Holding and Reasoning (Crane, J.)
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