Insurance Companies v. Thompson,
95 U.S. 547 (1877)

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U.S. Supreme Court

Insurance Companies v. Thompson, 95 U.S. 547 (1877)

Insurance Companies v. Thompson

95 U.S. 547


Certain insurance companies insured T. & Co. against loss or damage by fire "upon whiskey, their own or held by them on a commission, including government tax thereon for which they may be liable." They were so liable as sureties on the bond of the distiller in whose warehouse the whiskey was. The whiskey belonged to them, and was destroyed by fire, and the amount of the loss apart from the tax was paid by the companies. The tax was not paid, and, suit having been brought against T. & Co. on their bond, the companies, although thereunto requested, declined to defend it. Judgment was rendered against T. & Co., who thereupon gave in due form a bond which, under the laws of Kentucky, operated to satisfy the judgment, and they brought this action against the companies for the amount thereof.


1. That the interest of T. & Co. in the whiskey, by reason of their liability to pay the government tax was an insurable one.

2. That the policy was intended to furnish indemnity against that liability, as well as to insure the interest which, at the time of the loss, they had as owners of the whiskey.

3. That tire companies are liable to them for the amount of the judgment so rendered.

The facts are stated in the opinion of the Court.

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