Thirteen Investment Co., Inc. v. Foremost. Insurance Co.

Dist. Ct. did not err in granting defendant-insurance company’s motion for summary judgment in plaintiff-insured’s action seeking payment from defendant on fire losses covered under policy issued by defendant. Record showed that plaintiff had retained third-party as public adjuster and general contractor for repairs on said fire losses and directed any insurance company to include third-party on all payments on fire loss claim. Defendant thereafter negotiated with third-party on said fire loss claim and delivered two settlement checks to third-party that named plaintiff, its mortgagee and third-party as joint co-payees. Third-party then endorsed names of all co-payees, cashed checks and kept proceeds for itself. While plaintiff argued that defendant still had obligation to pay settlement proceeds to it, Dist. Ct. could properly find that when third-party as agent of plaintiff and co-payee received and cashed defendant’s settlement checks, said actions served to discharge defendant’s performance obligations under insurance policy. Ct. further observed that defendant did not agree to take responsibility for actions of public adjuster hired by plaintiff.