Safeway Moving and Storage Corporation v. Aetna Insurance Company and Security Insurance Group, Safeway Moving and Storage Corporation, Cross-Appellant v. Aetna Insurance Company and Security Insurance Group, Cross-Appellees

Fourth Circuit

Safeway Moving and Storage Corporation v. Aetna Insurance Company and Security Insurance Group, Safeway Moving and Storage Corporation, Cross-Appellant v. Aetna Insurance Company and Security Insurance Group, Cross-Appellees

452 F.2d 79, 1971 U.S. App. LEXIS 6749

CourtCourt of Appeals for the Fourth Circuit

DecidedDecember 6, 1971

Docket71-1109

StatusPublished

This text of 452 F.2d 79 (Safeway Moving and Storage Corporation v. Aetna Insurance Company and Security Insurance Group, Safeway Moving and Storage Corporation, Cross-Appellant v. Aetna Insurance Company and Security Insurance Group, Cross-Appellees) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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Safeway Moving and Storage Corporation v. Aetna Insurance Company and Security Insurance Group, Safeway Moving and Storage Corporation, Cross-Appellant v. Aetna Insurance Company and Security Insurance Group, Cross-Appellees, 452 F.2d 79, 1971 U.S. App. LEXIS 6749 (4th Cir. 1971).

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Opinion

452 F.2d 79

SAFEWAY MOVING AND STORAGE CORPORATION, Appellee,
v.
AETNA INSURANCE COMPANY and Security Insurance Group, Appellants.
SAFEWAY MOVING AND STORAGE CORPORATION, Cross-Appellant,
v.
AETNA INSURANCE COMPANY and Security Insurance Group, Cross-Appellees.

Nos. 71-1109, 71-1110.

United States Court of Appeals,
Fourth Circuit.

Argued Aug. 25, 1971.
Decided Dec. 6, 1971.

Norman F. Slenker, Arlington, Va. (Duff, Slenker, Brandt & Jennings, Arlington, Va., on brief), for Aetna Ins. Co. and Security Ins. Group.

A. Andrew Giangreco, Alexandria, Va., and Robert E. Manuel, Washington, D.C. (Giangreco, Seay & Manuel, Alexandria, Va., on brief), for Safeway Moving & Storage Corp.

Before HAYNSWORTH, Chief Judge, SOBELOFF, Senior Circuit Judge, and RUSSELL, Circuit Judge.

PER CURIAM:

After considering the briefs and oral arguments of the parties, we find no reason to disturb the District Court's findings of fact, 317 F.Supp. 238, and perceive no error of law. We sustain the District Court's conclusion that the Appellants breached their duty to defend. The finding of negligence on the part of Safeway by the Armed Services Board of Contract Appeals is a proper basis for the District Court's judgment.

The District Court awarded directly to Safeway damages against the insurance companies for $101,500 plus interest. As to the included award of $1,500 plus interest allowed to compensate Safeway for the expense of defending itself in the administrative hearing and the appeal to the administrative Board, the judgment shall stand. But the judgment in favor of Safeway for the remaining $100,000 (the face amount of the two fire liability insurance policies) plus interest is modified by impressing upon it a trust for the benefit of those property owners or their subrogees who obtain judgments against Safeway for damages caused by the fire.

The judgment of the District Court, as modified by this opinion, is

Affirmed.

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452 F.2d 79

SAFEWAY MOVING AND STORAGE CORPORATION, Appellee,
v.
AETNA INSURANCE COMPANY and Security Insurance Group, Appellants.
SAFEWAY MOVING AND STORAGE CORPORATION, Cross-Appellant,
v.
AETNA INSURANCE COMPANY and Security Insurance Group, Cross-Appellees.

Nos. 71-1109, 71-1110.

United States Court of Appeals,
Fourth Circuit.

Argued Aug. 25, 1971.
Decided Dec. 6, 1971.

Norman F. Slenker, Arlington, Va. (Duff, Slenker, Brandt & Jennings, Arlington, Va., on brief), for Aetna Ins. Co. and Security Ins. Group.

A. Andrew Giangreco, Alexandria, Va., and Robert E. Manuel, Washington, D.C. (Giangreco, Seay & Manuel, Alexandria, Va., on brief), for Safeway Moving & Storage Corp.

Before HAYNSWORTH, Chief Judge, SOBELOFF, Senior Circuit Judge, and RUSSELL, Circuit Judge.

PER CURIAM:

After considering the briefs and oral arguments of the parties, we find no reason to disturb the District Court's findings of fact, 317 F.Supp. 238, and perceive no error of law. We sustain the District Court's conclusion that the Appellants breached their duty to defend. The finding of negligence on the part of Safeway by the Armed Services Board of Contract Appeals is a proper basis for the District Court's judgment.

The District Court awarded directly to Safeway damages against the insurance companies for $101,500 plus interest. As to the included award of $1,500 plus interest allowed to compensate Safeway for the expense of defending itself in the administrative hearing and the appeal to the administrative Board, the judgment shall stand. But the judgment in favor of Safeway for the remaining $100,000 (the face amount of the two fire liability insurance policies) plus interest is modified by impressing upon it a trust for the benefit of those property owners or their subrogees who obtain judgments against Safeway for damages caused by the fire.

The judgment of the District Court, as modified by this opinion, is

Affirmed.

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