Bank of America National Trust & Savings Ass'n v. Allstate Insurance

ORDER GRANTING DEFENDANTS ALLSTATE INSURANCE COMPANY’S AND ALLSTATE PROPERTY AND CASUALTY INSURANCE COMPANY’S MOTION FOR SUMMARY JUDGMENT AND DENYING PLAINTIFF BANK OF AMERICA NATIONAL TRUST AND SAVINGS ASSOCIATION’S MOTION FOR SUMMARY JUDGMENT

This matter comes before the Court on the motion for summary judgment brought by Defendants Allstate Insurance Company and Allstate Property and Casualty Insurance Company (collectively “Allstate”) and the motion for summary judgment brought by Plaintiff Bank of America National Trust and Savings Association (“Bank of America”). Oral argument was heard on August 10, 1998. After consideration of the parties’ oral and written arguments, the Court grants Allstate’s motion for summary judgment and denies Bank of America’s motion for summary judgment.

BACKGROUND

Chuk N. and Rosa C. Tang (the “Tangs”) owned rental property in which Bank of America had a security interest (the “proper ty”). The property was insured by Allstate. The insurance policy had a Lender’s Loss Endorsement that provided that any loss or damage under the policy would be paid to Bank of America.

On November 21, 1993, the property was damaged by fire. Allstate investigated…