Acree v. Hanover Insurance Co.

561 F.2d 216 (1977)

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Acree v. Hanover Insurance Co.

United States Court of Appeals for the Tenth Circuit
561 F.2d 216 (1977)

  • Written by Sheryl McGrath, JD

Facts

Acree (plaintiff) owned a home in Chickasha, Oklahoma, and he bought fire insurance contracts from Fireman’s Fund Insurance Co. and Hanover Insurance Co. (the insurance companies) (collectively, defendants). During the time the insurance contracts were in effect, Acree entered into a contract to sell the home to Donald and Joyce Martin (the Martins). The home sale contract gave the Martins the option to cancel the contract if the home was damaged by fire before the sale was complete. About two weeks before sale was complete, a fire damaged the home. The Martins opted to complete the purchase and paid the full purchase price to Acree. The Martins understood that Acree would give them the insurance proceeds on the home; Acree had no such understanding. Acree submitted a claim to the insurance companies for the fire damage. The insurance companies declined the claim. Acree then sued the insurance companies for the insurance proceeds. The Martins intervened in Acree’s lawsuit. The trial court entered judgment in favor of the Martins. Acree appealed. The insurance companies paid the insurance proceeds into court and did not participate in the appeal.

Rule of Law

Issue

Holding and Reasoning (Breitenstein, J.)

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