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  Admiralty/Marine Insurance

New York Marine and General Insurance Company v. All Cargo Express, Inc., United States District Court, Southern District of New York, 01 CV 5736 (DLC), involved a declaratory judgment action that arose out of the alleged theft of perfume that was being shipped via overland truck movement from Laredo, Texas to Miami, Florida. Perfumania, Inc. (“Perfumania”) retained All Cargo Express, Inc. (“All Cargo”) to have the perfume shipment picked up from Bombay Connection in Laredo, Texas and transported to Perfumania’s warehouse in Miami, Florida. Prior to reaching Perfumania’s warehouse in Miami, the tractor/trailer and the subject shipment contained therein were allegedly stolen in Hialeah, Florida on November 21, 2002. The subject shipment of perfume was never recovered.

A claim was submitted under a Marine Open Cargo Policy issued by New York Marine and General Insurance Company (“NYMAGIC”) to All Cargo for the loss of perfume in the amount of $190,000.00. This claim was denied by NYMAGIC on various grounds including that All Cargo and Perfumania had no insurable interest in the shipment. The Court granted NYMAGIC a judgment declaring that there was no insurance coverage under the Marine Open Cargo Policy for the loss of perfume, that the Special Policy of Insurance issued by All Cargo under the Marine Open Cargo Policy to Perfumania was void, and that NYMAGIC was not liable in any manner to All Cargo or Perfumania with respect to the claim for loss.