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COA finds trust that bought foreclosed home gained insurance equity

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An estate that purchased a foreclosed house at a sheriff’s sale established an equitable lien through which it was entitled to collect proceeds in the event of an insured loss, the Indiana Court of Appeals ruled Friday.

The decision in The Marling Family Trust v. Allstate Ins. Company, 49A02-1203-CT-186, regards the trust’s purchase of a home on West Henry Street in Indianapolis that had been owned by Thomas Pipes. A claim arose when the purchased home was found to have sustained interior water damage.

The trial court granted summary judgment in favor of Allstate without issuing findings.

In reversing the Marion Superior Court ruling, the COA found that the trial court erred in its application of an appellate panel’s rehearing of Lakeshore Bank & Trust Company v. United Farm Bureau Mutual Insurance Company, Inc. 474 N.E.2d 1024, 1026 (Ind. Ct. App. 1985).   

“The trust’s mortgage agreement with Pipes required Pipes to insure the property for the benefit of the trust as mortgagee. Under Lakeshore, this is sufficient to give rise to an equitable lien in the trust’s favor,” Judge Nancy Vaidik wrote for the unanimous panel.

“The trust protected its equitable interest in the policy proceeds by informing Allstate of its mortgagee status before any policy proceeds were distributed. Thus, to the extent that the loss here is otherwise covered under the terms of Pipes’ insurance policy, the trust may recover policy proceeds.

“We reverse the judgment of the trial court and remand for a determination of whether the loss is covered under the policy,” Vaidik wrote.






 


 

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  1. KUDOS to the Indiana Supreme Court for realizing that some bureacracies need to go to the stake. Recall what RWR said: "No government ever voluntarily reduces itself in size. Government programs, once launched, never disappear. Actually, a government bureau is the nearest thing to eternal life we'll ever see on this earth!" NOW ... what next to this rare and inspiring chopping block? Well, the Commission on Gender and Race (but not religion!?!) is way overdue. And some other Board's could be cut with a positive for State and the reputation of the Indiana judiciary.

  2. During a visit where an informant with police wears audio and video, does the video necessary have to show hand to hand transaction of money and narcotics?

  3. I will agree with that as soon as law schools stop lying to prospective students about salaries and employment opportunities in the legal profession. There is no defense to the fraudulent numbers first year salaries they post to mislead people into going to law school.

  4. The sad thing is that no fish were thrown overboard The "greenhorn" who had never fished before those 5 days was interrogated for over 4 hours by 5 officers until his statement was illicited, "I don't want to go to prison....." The truth is that these fish were measured frozen off shore and thawed on shore. The FWC (state) officer did not know fish shrink, so the only reason that these fish could be bigger was a swap. There is no difference between a 19 1/2 fish or 19 3/4 fish, short fish is short fish, the ticket was written. In addition the FWC officer testified at trial, he does not measure fish in accordance with federal law. There was a document prepared by the FWC expert that said yes, fish shrink and if these had been measured correctly they averaged over 20 inches (offshore frozen). This was a smoke and mirror prosecution.

  5. I love this, Dave! Many congrats to you! We've come a long way from studying for the bar together! :)

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