COOS HEAD TIMBER CO. v. UNIGARD INDEMNITY

83-692; CA A32404.

699 P.2d 1143 (1985)

73 Or.App. 598

COOS HEAD TIMBER COMPANY, an Oregon Corporation, Appellant, v. UNIGARD INDEMNITY COMPANY, a North Carolina Insurance Corporation, and Empire Indemnity Insurance Company, an Oklahoma Insurance Corporation, Respondents.

Court of Appeals of Oregon.

Decided May 22, 1985.

Reconsideration Denied July 5, 1985.


Attorney(s) appearing for the Case

William A. McDaniel, Coos Bay, argued the cause for appellant. With him on the briefs was Foss, Whitty & Roess, Coos Bay.

I. Franklin Hunsaker, Portland, argued the cause for respondents. With him on the brief were Robert F. Riede, and Bullivant, Houser, Bailey, Pendergrass, Hoffman, O'Connell & Goyak, Portland.

Before RICHARDSON, P.J., and WARDEN and NEWMAN, JJ.


RICHARDSON, Presiding Judge.

Plaintiff brought this action on a fire insurance policy issued by the defendant insurers. The policy has a "protective safeguards endorsement," the introductory paragraph of which states, as material, that "[f]ailure to comply with [the clauses of the endorsement] shall suspend this insurance." One of the clauses contained in the endorsement is an "automatic sprinkler clause," which provides in relevant part:

"In consideration...

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