Fernandez v. Di Salvo Appliance Co‪.‬

The action is one upon a policy of "Hull insurance" issued by the defendant underwriters upon an airplane owned by the plaintiff. By the terms of the policy, defendant agreed "[to] pay for any loss of or damage to the aircraft." The policy provided that the underwriters "shall be subrogated in case of payment of any claim under this Certificate. .. to all of the Assureds rights of recovery therefor against persons, corporations, [etc.]... ." After the issuance of the policy, and while it was in force, the plaintiff entered into a contract with a corporation known as "Bell Air Service Incorporated" which corporation was owned and managed by one Paul N. Bell. By this contract, plaintiff leased the insured aircraft to Bell Air Service, hereinafter called "Bell." Bell agreed to rent the aircraft only to qualified pilots, agreed to charge $22 per hour for the rental of said aircraft and to pay to plaintiff the sum of $16 per revenue hour. It was further agreed that all normal expenses for fuel, oil and repairs should be paid by Williams provided that this shall not include costs " due to negligence on the part of BAS employees in the handling of said aircraft on the ground."