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WHITE CROSS STORES v. HARTFORD INSURANCE COMPANY (03/31/83)

filed: March 31, 1983.

WHITE CROSS STORES, INC. #14, APPELLANT,
v.
HARTFORD INSURANCE COMPANY



No. 803 Pittsburgh 1981, Appeal from Judgment of the Court of Common Pleas of Allegheny County, Civil Action, Law at No. GD 75 - 17461.

COUNSEL

Herman C. Kimpel, Pittsburgh, for appellant.

Robert E. Wayman, Pittsburgh, for appellee.

Spaeth, Johnson and Hoffman, JJ.

Author: Spaeth

[ 312 Pa. Super. Page 74]

This is an appeal from a judgment entered following an order denying appellant's motions for judgment n.o.v. and for a new trial. Appellant argues, inter alia, that the lower court erred in conditioning appellant's right to collect

[ 312 Pa. Super. Page 75]

    insurance proceeds from appellee on appellee's receipt of notice from the insured that appellant was a designated vendor. We reverse and remand for a new trial.

Becton, Dickinson and Co. manufactures disposable syringes. Between December 1, 1970, and December 1, 1971, Becton was insured by appellee, Hartford Insurance Company. The insurance policy contained the following provision:

It is agreed that the 'Persons Insured' provision is amended to include any person or organization (herein referred to as 'Vendor') as an Insured but only with respect to the distribution or sale in the regular course of the Vendor's business of the Named Insured's products . . . .

IT IS UNDERSTOOD AND AGREED THAT SUCH COVERAGE AS IS AFFORDED UNDER THIS ENDORSEMENT SHALL BE AT THE DESIGNATION OF THE NAMED INSURED.

On February 11, 1981, Becton forwarded a letter to appellant, White Cross Stores, Inc., under the caption "Product Liability Certification." The letter stated, "Enclosed is our Certificate No. 105 which replaces our previously issued Certificate No. ...


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