Altus Bank v. State Farm Fire & Casualty Co.
Opinion
Opinion
Letts, J.
ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY ' JUDGMENT
Defendant State Farm Fire and Casualty Company (“State Farm”) has moved for summary judgment in this insurance bad faith action brought by plaintiff Altus Bank. Having reviewed the papers filed in connection with this matter, having heard oral argument, and being fully apprised of the relevant facts and law, the Court finds that the motion for summary judgment should be GRANTED.
FACTS
In August 1987, Larry and Susan Young-blood executed a deed of trust securing a home mortgage loan made by Westwind Mortgage Corporation (“Westwind”). Shortly thereafter, State Farm issued a homeowner’s insurance policy (“the policy”) covering the Youngbloods' property and naming Westwind as the mortgagee. In September 1987, Westwind assigned its interest in the Youngbloods’ loan to Altus Bank, and State Farm was duly notified.
On October 2,1987, the house covered by the mortgage was destroyed by fire. The Youngbloods, who had made no mortgage payments on the property, filed a claim with State Farm for the total amount of policy coverage. State Farm suspected arson and commenced a full investigation.