Whitney National Bank Of New Orleans v. State Farm Fire And Casualty Company

518 F.Supp. 359 (1981)

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Nature of the Case

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Facts

D issued a Special Multi-Peril Policy covering liability and personal property of Foreign Car Parts, Inc. The original policy in Item 7 of the declarations page thereof shows the following as P. P is the mortgagee as to the contents, inventory, and other chattels of Foreign Car Parts, Inc. as holder of a collateral mortgage note in the sum of $1,000,000.00. A fire damaged or destroyed the property of Foreign Car Parts, Inc. This fire was caused by arson instigated by Robert Bradford Smith and participated in by others, including Davis King, Jr. Robert Bradford Smith was President, Registered Agent, and General Manager and supervised all the operational activities of Foreign Car Parts, Inc. All of the common stock of Foreign Car Parts, Inc. was registered to the name of Marilyn Furman Smith at the time of the fire, and at that time Marilyn Furman Smith was the wife of Robert Bradford Smith. Robert Bradford Smith pleaded guilty to the arson. The loss amounted to $229,565.00. The mortgage indebtedness to P far exceeds the fire loss and damage to the movable property, contents, inventory, and other chattels of Foreign Car Parts, Inc. P duly notified D of its loss and damage and within the time specified in the policy caused to be served upon the D due and proper proofs of loss. D has refused to pay P's loss and damage.