A clothing importer carried a marine cargo policy that covered purchased shipments from their point of origin to the final warehouse at a designated destination. The policy contained the following limitation: "It is a condition of this insurance that there shall be no interruption or suspension of transit unless due to circumstances beyond the control of the insured."

A large shipment of clothing from Taiwan disappeared from the premises of a trucking company that had picked up the shipment from the pier where the carrying vessel had docked. The trucker was commissioned to deliver the cargo to the insured's warehouse. It was clear, from testimony by employees of both the insured importer and the trucker, that the insured had asked the carrier to hold the shipment at its premises for a few days until its new warehouse in another city had been made ready. The cargo vanished from the trucker's location after eight days.

The insurance company sought a declaratory judgment to the effect that it had "rightfully declined insurance coverage for the loss." The court concluded that the eight-day stopover of the shipment was "an interruption or suspension of transit" within the meaning of the policy language. Transit was suspended at the express request of the insured. The insurer was not obligated to cover the loss. Its motion for summary judgment was granted.

(SWITZERLAND INS. CO. UK, LTD., Plaintiff v. HUALEY KNITWEARS (U.S.A.), INC. ET AL., Defendants. United States District Court, Southern District of New York. No. 90 civ. 4425 (JFK). December 9, 1991. CCH 1991-92 Fire and Casualty Cases, Paragraph 3489.)