Louis Brandeis

“ Stress is laid on the circumstance that in its specifications of defense the company alleged knowledge and control by the insured of the presence of the gasoline and the operation of the stills; and it is argued that the parties are bound by the issue as thus joined. But the pleading set forth the prohibited articles warranty and asserted a defense under it. Any additional matter, which might by implication be read as an attempted construction of the warranty, is to be regarded as surplusage. ”

“ The only error assigned here by the insurance company relates to the construction of the prohibited articles warranty, and to the Circuit Court of Appeals' approval of the trial court's instructions with reference thereto. It is contended that under that warranty, even as modified by the rider, the presence of gasoline in connection with the use of the premises for the illegal manufacture of intoxicating liquors was an absolute bar to liability, regardless of the plaintiff's knowledge or control of the conditions ”

“ The parties stipulated that the plaintiff was entitled to recover 'unless the policy had been forfeited and nullified by the alleged violations as set forth in defendant's Specifications fo Defense Nos. 1 and 2 filed in this case.' The first specification recited the increase of hazard warranty: 'Unless otherwise provided by agreement in writing added hereto, this company shall not be liable for loss or damage occurring (b) while the hazard is increased by any means within the control or knowledge of the insured' ”