Leadership

CLEAR SPACE CLAUSE RULING.

Issue 7 and Volume 40.

CLEAR SPACE CLAUSE RULING. The Supreme court of Minnesota, in the suit of the Wild Rice Lumber company against the Royal, appealed by the latter company, has decided against the insurance company, holding that the clear-space clause, upon which the case depended, is not legal. The lumber company had warranted a 200-ft. space between the mill and the lumber, and made claim for the lumber burned on a platform outside the mill, within the 200-ft. space. The Supreme court holds that the clearspace clause attached as a rider to the policy is void in so far as any warranty is concerned. The company has no authority to attach to the standard policy any such clause, as the law prescribes the only terms and conditions which can be incorporated in a contract of fire insurance. The decision ooints out that, while the clear-space clause cannot be made a warranty, it can…

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