Raplee v. Piper
Court of Appeals of New York
143 N.E.2d 919 (1957)
Raplee (plaintiff) contracted to buy real property from Piper (defendant), with the contract requiring Raplee to maintain and pay premiums on a casualty insurance policy carried in Piper's name; after Raplee took possession, a fire destroyed a building on the property, and Piper received insurance proceeds covering part of the remaining purchase-price balance. Raplee paid Piper the difference between the proceeds and the balance, but Piper refused to credit the insurance proceeds toward that balance, and the trial court ruled Piper must apply the proceeds as a credit; Piper appealed.
Whether, under New York law, when a real-property purchase contract requires the buyer to maintain a casualty insurance policy in the seller's name and a loss occurs after contract execution but before closing, the seller must apply the insurance proceeds toward the buyer's remaining balance on the purchase price.