FACTS
Newlife Enterprises insured its stocks with Western Guaranty Corporation, Reliance Surety and Insurance Co., Inc., and Equitable Insurance Corporation. In 1982, the building was gutted by fire where the stocks insured are placed. According to the certification issued the cause of fire was electrical in nature.
After the fire, the petitioner went to the insurance companies to file a claim. Ultimately, the three insurance companies denied plaintiffs’ claim for payment for breach of policy conditions. It allegedly violated Conditions No. 3 & 27 of the insurance contract where it provides that it must state or endorse thereon the other insurance coverage obtained or subsequently effected on the same stocks.