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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. The practitioners and judges who hail E-filing as the Saviour of the West need to contain their respective excitements. E-filing is federal court requires the practitioner to cram his motion practice into pigeonholes created by IT people. Compound motions or those seeking alternative relief are effectively barred, unless the practitioner wants to receive a tart note from some functionary admonishing about the "problem". E-filing is just another method by which courts and judges transfer their burden to practitioners, who are the really the only powerless components of the system. Of COURSE it is easier for the court to require all of its imput to conform to certain formats, but this imposition does NOT improve the quality of the practice of law and does NOT improve the ability of the practitioner to advocate for his client or to fashion pleadings that exactly conform to his client's best interests. And we should be very wary of the disingenuous pablum about the costs. The courts will find a way to stick it to the practitioner. Lake County is a VERY good example of this rapaciousness. Any one who does not believe this is invited to review the various special fees that system imposes upon practitioners- as practitioners- and upon each case ON TOP of the court costs normal in every case manually filed. Jurisprudence according to Aldous Huxley.

  2. Any attorneys who practice in federal court should be able to say the same as I can ... efiling is great. I have been doing it in fed court since it started way back. Pacer has its drawbacks, but the ability to hit an e-docket and pull up anything and everything onscreen is a huge plus for a litigator, eps the sole practitioner, who lacks a filing clerk and the paralegal support of large firms. Were I an Indiana attorney I would welcome this great step forward.

  3. Can we get full disclosure on lobbyist's payments to legislatures such as Mr Buck? AS long as there are idiots that are disrespectful of neighbors and intent on shooting fireworks every night, some kind of regulations are needed.

  4. I am the mother of the child in this case. My silence on the matter was due to the fact that I filed, both in Illinois and Indiana, child support cases. I even filed supporting documentation with the Indiana family law court. Not sure whether this information was provided to the court of appeals or not. Wish the case was done before moving to Indiana, because no matter what, there is NO WAY the state of Illinois would have allowed an appeal on a child support case!

  5. "No one is safe when the Legislature is in session."

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