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Paragon Molding, Ltd. v. Safeco Insurance Company

United States District Court for the Southern District of Ohio
2010 WL 2386355 (2010)


Paragon Molding, Ltd. (Paragon) (plaintiff) had a fire at its duck call manufacturing facility and suffered extensive damage to the real estate and surrounding structures. There was a fire insurance policy covering the property held by American Economy Insurance Company (AEIC) (defendant), mislabeled as Safeco Insurance Company. When AEIC refused to provide funds under the terms of the policy, Paragon filed suit. Thereafter, several parties came forward claiming they were owed a portion of the insurance policy proceeds. Those parties included (1) Miller Industries, L.L.C. (Miller) (plaintiff), as owner of the real estate occupied by Paragon and which was represented by the same counsel as Paragon; (2) The Alex N. Sill Company (Sill) (plaintiff), as a consultant and appraiser that assisted in the preparation of the fire insurance claim; (3) Roy Rhodes (Rhodes) (plaintiff), who individually sold his business to Paragon and maintained an equity share in that company; (4) Jimmie Rhodes (plaintiff), who also had a vested financial interest in Paragon; and (4) JPMorgan Chase Bank, N.A. (plaintiff), which possessed three state court judgments against Paragon totaling over $500,000. Subsequently, the parties agreed to deposit the insurance proceeds totaling over $1.3 million with the court for eventual distribution. The court then determined whether it had jurisdiction over the parties.

Rule of Law


Holding and Reasoning (Rice, J.)

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