Opinion ID: 71845
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: Sanford Credini and his wife each owned fifty percent of two companies, Golden Door Jewelry Creations, Inc. (Golden Door) and Suisse Gold Assayer and Refinery, Inc. (Suisse Gold). Credini functioned as the president and principal operating officer of both corporations. In addition to common ownership, the businesses shared common office space in Miami, Florida. Suisse Gold purchased scrap gold for refinement and resale. Golden Door purchased refined gold and precious metals, from which it created jewelry and other objects for resale. The businesses often acted in tandem, with Suisse Gold selling most of its output to Golden Door. Both companies obtained their respective gold supplies from third parties. Leach and Garner Company (Leach) consigned refined gold to Golden Door pursuant to a consignment agreement. Westway Metals Corp. (Westway) entered into a similar consignment agreement for scrap gold with Suisse Gold. Golden Door retained a warehouser, Lawrence Systems (Lawrence), to store the consigned materials. Lawrence stored, and retained in its possession, Leach's and Westway's gold stock in two separate safes on the premises of Golden Door and Suisse Gold, but one representative of Golden Door and Suisse Gold, respectively, also retained access to the gold. In 1981, Golden Door and Suisse Gold purchased a jeweller's block policy from Lloyds Underwriters Non-Marine Association and its representative underwriter, Peter Wright (collectively, Lloyds). The policy insured all jewelry products owned by, delivered to or entrusted to Golden Door or Suisse Gold against all risks, including theft, subject to several exclusions. The policy specifically named the insured as Sanford [Cr]edin, doing business as Golden Door ... and/or Suisse Gold. Over the next several years, Golden Door and Suisse Gold renewed and amended the policy, adding excess policies and endorsements. These amendments increased the coverage for each company to $6,000,000. One endorsement added Westway as a loss payee for coverage afforded to Suisse Gold. Leach was not added as a loss payee. On February 10, 1983, an unknown party, later identified as Credini, stole $9,000,000 of goods from Golden Door, Suisse Gold and the safes containing Leach's and Westway's gold. Attempting to conceal his theft, Credini initially filed a claim with Lloyds. Upon investigating the claim, however, Lloyds refused payment because it suspected that Credini had been involved in the loss. In 1988, following a flight from jurisdiction and extradition back to the United States, a grand jury indicted Credini, and he pleaded guilty to conspiracy in the United States District Court for the Southern District of Florida.