Contracts Keyed to Fuller
Sardo v. Fidelity & Deposit Co.
Sardo (Plaintiff) desired to obtain insurance against theft of the jewelry in his store. Plaintiff visited Fidelity & Deposit Co. (Defendant) agent, who told Plaintiff that the agent had authority only to issue policies covering burglary and that he would speak with Defendant about finding a policy suited to Plaintiff’s needs. Defendant issued a policy covering “money and securities” but not jewelry. Plaintiff did not read the policy but, as he had applied for a policy covering jewelry, assumed it covered jewelry. Plaintiff sued when his store was robbed and Defendant refused coverage. The trial court ruled that since Defendant’s agent had knowledge that there were no securities in Plaintiff’s store that Plaintiff was entitled to have the contract reformed to substitute “jewelry” for “securities.” Defendant appealed.
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