Delaware State Fire & Marine Insurance v. Gillett

Robinson, J., delivered the opinion of the Court. This is an application to a Court of Equity, to reform a fire policy, and to enforce the payment of losses sustained hy the property insured. The hill alleges that the general agent of the company made application in person to insure complainant’s mill, engine and machinery, and after some conversation in regard to the value of the risk, he agreed in consideration of forty dollars to issue a policy insuring the property against loss hy fire for one year. That in pursuance of this agreement, the agent on the 20th June, 1877, made out the policy and mailed it to the complainant in Norfolk, Virginia, and that whilst the policy was in force the property was destroyed hy fire.

That the agent was informed hy the complainant that the building stood on leased ground, and was also informed in regard to the annual ground rent paid on account of same, and it was understood between them that the property was to he so described in the policy. That owing to some inadvertence or mistake on the part of the agent, it was not described as leasehold prop ²²¹ erty in the policy,—that this mistake was not discovered hy the complainant until after the loss of the property hy fire, and that the company now refuses to pay the loss sustained