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HEARST MAGAZINES v. CUNEO EASTERN PRESS

November 22, 1968

HEARST MAGAZINES, DIVISION OF the HEARST CORPORATION and Employers' Liability Assurance Corp.
v.
The CUNEO EASTERN PRESS, INC. OF PENNSYLVANIA



The opinion of the court was delivered by: WOOD

 Wood, District Judge.

 FINDINGS OF FACT

 1. Since 1919 Hearst and Cuneo have been parties to a contractual relationship whereby Hearst delivered its paper to Cuneo for printing.

 2. Pursuant to said contractual relationship and since the acquisition of its present facility in North Philadelphia in 1932, Cuneo has stored in its warehouse for varying periods of time Hearst paper prior to printing.

 3. Hearst and Cuneo entered into a formal contractual arrangement in an agreement dated May 21, 1935.

 4. Thereafter the parties made a number of modifications and amendments of the original contract; among these modifications and amendments was one dated March 5, 1947, providing inter alia that:

 
"2. All the terms, conditions and practices of the aforesaid contract dated May 21, 1935 as thereafter modified and amended, shall remain in full force and effect, except as hereinafter modified." (Plaintiff's Exhibit 8)

 5. The following letter was sent to Cuneo from Hearst dated November 5, 1954:

 "Gentlemen:

 In accordance with our recent conversation and your letter of October 22nd, we wish to state that all property owned by us, which is in use or otherwise stored in your main plant at Erie Avenue, F and G Streets in Philadelphia, is separately insured by us against loss or damage from fire, sprinkler leakage and other commonly insured risks, with the exception or paper stored in your press rooms, which is covered only against fire and sprinkler leakage damage.

 You may therefore exclude such coverage for all our property on your policy which covers your plant.

 Very truly yours,

 HEARST MAGAZINES ...


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