Cargo Master, Inc. v. Ace USA Insurance Company, Steven W. Hines, D/B/A S & A Trucking, and S & A Transportation, Inc. D/B/A S & A Trucking

This is an insurance case. The plaintiff cargo company entered into a carrier agreement with an independent trucking company to transport freight, in which the trucking company agreed to indemnify the plaintiff for any loss or damage to the freight transported.  The trucking company obtained a motor truck cargo liability insurance policy, which insured property while in due course of transit. In the process of transporting a shipment of tires for the plaintiff, the driver for the trucking company parked the trailer portion of the tractor-trailer behind a shopping center and left it overnight.  During the night, the cargo was stolen.  The trucking company submitted a claim against its cargo insurance policy and the claim was denied.  The plaintiff sued the trucking company and the cargo insurance company for breach of contract, seeking to recover the value of the stolen cargo.  The plaintiff filed a motion for summary judgment against the defendant cargo insurance company and, in response, the defendant insurance company filed a cross-motion for summary judgment.  The trial court granted summary judgment in favor of the cargo insurance company, finding that the shipment of tires was not “in transit” when it was stolen and that, consequently, there was no coverage under the policy.  The plaintiff cargo company appeals.  We reverse in part, affirm in part, and remand the case for further proceedings.