Breidendbach (defendant) entered into a contract to purchase a parcel of land and a house from Sanford (plaintiff). After executing the purchase agreement, Breidenbach purchased a casualty insurance policy covering the property and deposited part of the purchase price in an escrow account. Sanford also had an insurance policy for the property. Prior to closing, the house was destroyed by fire. Breidenbach refused to complete the sale. Sanford filed suit seeking specific performance. Breidenbach filed a cross claim seeking to hold Sanford’s insurance company responsible for covering the loss. The trial court denied Sanford’s claim for specific performance and apportioned responsibility for covering the loss between both insurance companies based on the amount of Breidenbach’s escrow deposit relative to the entire purchase price. Three of the parties involved petitioned for appellate review of the trial court’s decision.