Agricultural Insurance v. Smith

Appellant, Agricultural Insurance Company appeals from a judgment in favor of respondents, Melvin J. Smith, et al., in an insurance subrogation action brought by the appellant against the respondents to recover payments it claims to have made on behalf of its insureds, the lessors of a building leased to respondents, on account of damages to the building caused by fire.

In its amended complaint the following facts were averred: Appellant had issued a policy of insurance to the named lessors of the premises, insuring them against loss or damage by fire. The respondents were in exclusive possession of the insured premises under a lease, a copy of which was incorporated into the pleading. While the insurance was in effect, the premises were damaged by a fire negligently caused by the respondents. Pursuant to its policy of insurance, appellant paid $33,783.43 to repair the damage to the property. The second cause of action recited the terms of a clause of the lease between respondents and the lessors of the premises requiring the lessees to indemnify the lessors for loss, damage or expenses of any kind arising out of any acts or omissions on the part of the lessees or their agents,…