Image courtesy of New York Public Library.
In Idaho, a bank which gave a homeowner's insurance payout without looking to a contractor for allegedly shoddy work, was held not to have control over the payout it made. Aliens made them do it, do you think, is that why they did not have "control?"
The "deed of trust" or mortgage which the bank received from the homeowners contained a standard provision allowing the bank to inspect the state of construction during "restoration and repairs." So, was the bank prevented from having "control" over the insurance proceeds during the repairs and restoration period, which was when it paid out the money without an inspection in this case?
No, said the Idaho Supreme Court, the bank did not have control over that money because the homeowner did not ask the bank to inspect the work it paid for, before the bank paid for it.
And since the homeowner was at fault because the homeowner did not ask, the bank was not in control of the insurance proceeds as the loss payee when the homeowner's house burned down.
I’m not making this up, as they say. See Skinner v. U.S. Bank Home Mortgage, No. 42065, 2016 WL 275312 (Idaho Jan. 22, 2016).
Please Read The Disclaimer. ©2016 by Dennis J. Wall, author of "Lender Force-Placed Insurance Practices" (American Bar Association 2015). All rights reserved.
Comments