Paramount Fire Insurance Company v. Aetna Casualty and Surety Company
Supreme Court of Texas
353 S.W.2d 841 (1962)
Relevant factsFree
After a fire destroyed improvements on property under a sale contract before closing, both the sellers (insured by Paramount, which excluded the purchasers) and the purchasers (insured separately by Aetna) had coverage; at closing the purchasers still paid the full purchase price and received the sellers' assigned rights under the Paramount policy, and the insurers disputed which should bear the loss.
IssueFree
Whether, if a property that is destroyed prior to closing is covered by insurance policies held by both the purchaser and the seller, and the seller receives the full value of the property, the seller's insurer bears the cost of the loss.