Starkman v. Sigmond
Superior Court of New Jersey
446 A.2d 1249 (1982)
Relevant factsFree
After buying a house subject to a $60,000 mortgage held by the Sigmonds (defendants), buyer Starkman (plaintiff) obtained fire insurance that named the Sigmonds as loss payee in order of mortgage precedence; when the house burned and had to be demolished, the insurer issued $135,000 for rebuilding while placing $60,000 in escrow, and both parties moved for summary judgment over entitlement to the funds.
IssueFree
Whether, absent impairment of the mortgagee's security or default on the mortgage, proceeds from a hazard insurance policy are paid to the mortgagor to effect repair.