Terra Nova Insurance Co. v. Associates Commercial Corp.

697 F.Supp.1048 (1988)

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Nature of the Case

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Facts

Scharbarth did not like his present truck and decided to have it stolen in Sparks, Nevada. He did it for the insurance money. Scharbarth then made a claim for his loss with his insurance company (P). P hired a private investigator; however, by the next month, P paid the claim based on good faith considerations. P sent a check to Scharbarth and Associates (D) for $62,210 on the policy. D held the security interest in the truck and knew nothing of the alleged fraud. Scharbarth owed $49,647.51 and it conveyed the interest in the truck to P, and another $11,500 went for a replacement tractor unit and Scharbarth only netted $1057.49. The FBI got involved, and eventually, Scharbarth was indicted for mail fraud. He was sentenced to two years. P then wrote D looking for a return of the $62,210. D refused to pay so P sued D and both parties moved for summary judgment. The court granted summary judgment to D against P and to P against Scharbarth.