Vought Aircraft Industries, Inc. v. Falvey Cargo Underwriting, Ltd.
This case involves Vought Aircraft Industries' claim against its marine cargo insurers, Falvey Cargo Underwriting, Ltd., XL London Market, Limited, and Dornoch Limited, for breach of policy and other claims. A horizontal stabilizer manufactured by Vought was damaged during rail shipment, a peril covered by the marine cargo insurance policy. Vought repaired the stabilizer and sought reimbursement for direct repair costs, overhead expenses, and expediting costs for replacement stabilizers. The court largely dismissed Vought's claims for expediting costs and overhead expenses, finding most were not covered by the policy, though it noted ambiguity in certain policy clauses regarding some shipping costs and overhead. All of Vought's extra-contractual claims, including breach of good faith and fair dealing, unfair insurance practices, breach of repair agreement, promissory estoppel, quantum meruit, and unjust enrichment, were dismissed. XL London Market, Limited's defense asserting it acted solely as an agent for a disclosed principal was denied, indicating a factual dispute.