| After two years of operation, inspection revealed cracks and leaks in superheater attributed to use of rigid tie welds. |
| The upper portion of the boiler was equipped with a superheater comprised of tubes connected together by tie welds. |
| The Supreme Court accepted that there was a latent defect in the superheater. |
| Arkwright was not liable as damage to superheater did not constitute insured loss. |
| The more total evaporative heating surface and the more superheater heating surface, the more power the boiler can produce. |
| Since C. E., as manufacturer, knew or was presumed to have known about the defect in the superheater, the Court found that C. E. could not rely on the limitation of liability clause. |
