American Eagle Fire Ins. Co. v. Gayle

A large quantity of tobacco in the possession of Gaines as receiver for the Northern District Warehousing Corporation at Carrollton, Kentucky, was completely destroyed by fire. The tobacco had been insured with companies lodging the appeal, in the aggregate sum of $39,000. Its appraised value was $35,642.12, but the interest of the receiver therein was only $22,458.02, and this amount was paid by the appellants immediately upon its ascertainment, disclaiming greater liability under the terms of the policies.The appellees having asserted an interest in the tobacco and in the coverage of the policies, under contract with the receiver, the appellants brought an action for a declaration of limited liability against the receiver and appellees under the Federal Declaratory Judgement Act, Section 274d, Judicial Code, 28 U.S.C.A. § 400.