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Commercial Law Keyed to Lopucki
Design Data Corp. v. Maryland Casualty Co
Facts
Plaintiff sold a “Hewlitt Packard 7586B Roll-Feed 8-Pen Drafting Plotter” to HHB. Plaintiff arranged for shipment of this product to HHB by carrier. When the product arrived it appeared to be damaged. Shortly thereafter, the president of HHB and Plaintiff’s representative tried to get the product to work unsuccessfully. Plaintiff agreed to replace the product. Plaintiff then filed a claim with its insurance company, Defendant. Defendant denied the claim. Defendant stated that it would not cover any equipment that Plaintiff did not own. Because Plaintiff had delivered the product to the buyer who had accepted it, the risk of loss passed to the buyer and Plaintiff had no insurable interest at the time the damage was discovered.
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