eBook details
- Title: Underwriters at Lloyd's v. United Bank
- Author : Supreme Court of Alaska
- Release Date : January 27, 1981
- Genre: Law,Books,Professional & Technical,
- Pages : * pages
- Size : 61 KB
Description
MATTHEWS, Justice. OPINION On August 13, 1978, an airplane piloted by Ted Koerber and owned by Richard Burnette was totally destroyed in a crash. The aircraft had been purchased by Burnette in 1977 from Lynwood Marshall. 1 Apparently, the aircraft was regularly kept at the same airfield where Marshall's business was located. Effective March 8, 1978, the appellant insurance companies issued a policy of hull insurance under which Marshall was the named insured and under which various aircraft, several of which were not owned by Marshall, were specifically described, including that owned by Burnette. Appellee United Bank of Alaska was listed as the lienholder of Burnette's aircraft. Just what the agreement between Burnette and Marshall was as of March 8, 1978, is not reflected by the record. However, it is clear that Burnette orally leased the plane to Marshall at some point so that Marshall could use it on a Bureau of Land Management contract which began on May 3, 1978, and terminated on August 10, 1978. Marshall stated by affidavit that on August 10, 1978, he informed Burnette that the BLM contract had been completed and that the oral lease for the aircraft was terminated. Effective that same day, Marshall deleted the aircraft from the reporting form, required by the insurance policy, on which he was to list those planes owned or leased by him. Marshall also averred that on August 10, Burnette came to his place of business with Ted Koerber and asked Marshall if Koerber had been checked out in the aircraft in question. Marshall told Burnette that Koerber had not been checked out in the aircraft and that he had no personnel available to do so at the time. Subsequently on the same day, Koerber arrived at the airport with another pilot who apparently did conduct a test flight of the aircraft with Mr. Koerber. On August 13, Koerber came to the airport alone, purchased gas from Marshall for the aircraft, and informed Marshall's employee that either he or Burnette would pay for the gas upon his return. This was the flight that terminated in the crash which gave rise to this lawsuit.