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Starkman v. Sigmond

Superior Court of New Jersey
446 A.2d 1249 (1982)


Facts

Tami Starkman and Dora Birnbaum (plaintiffs) purchased a house from Robert and Barbara Sigmond (defendants), subject to a $60,000 mortgage in favor of the Sigmonds. The mortgage and note did not contain any provision for accelerating payment due to fire. Starkman obtained a fire insurance policy from Prudential Property and Casualty Insurance (Prudential). The policy stated: “Loss, if any, under this policy, shall be payable to the mortgagee named on the first page of this policy . . . in order of precedence of said mortgage.” The house caught fire and was damaged to the point that the building inspector required demolition. Prudential issued checks for a total of $135,000 under the insurance policy for the construction of a new house. Prudential placed $60,000 of the insurance funds in escrow. Both parties moved for summary judgment.

Rule of Law

Issue

Holding and Reasoning (Deighan, J.)

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