Northwest Farm Bureau Insurance Company v. Althauser
Court of Appeals of Oregon
750 P.2d 1166 (1988)
Relevant factsFree
After a fire, Northwest paid off the Althausers' mortgages under their homeowner's policy, but a jury later found the Althausers made a material misrepresentation in their personal-property loss claim, nullifying their policy; Northwest then sued to foreclose, arguing that since the policy was void, the Althausers remained responsible for the mortgage debt Northwest had paid on their behalf.
IssueFree
Whether an insurer is subrogated to a mortgagee's rights if the insurer paid the mortgagee under an insurance policy and the insurance policy was nullified because the insured made a material misrepresentation.