First Mortgage v. Cal. Casualty Ins. CA4/2

INTRODUCTION

Plaintiff First Mortgage Corporation (First Mortgage) appeals from a summary

judgment granted in favor of defendant California Casualty.1 Defendant was the insurer

of residential real property in which First Mortgage held a security interest. When the

property was damaged by fire in January 2007, defendant issued a check to the property

owner and to First Mortgage. The owner cashed the check and did not share the proceeds

with First Mortgage. First Mortgage did not file its lawsuit against defendant until May

2012. We hold First Mortgage’s claim was time-barred and we affirm the summary

judgment.

II

FACTUAL AND PROCEDURAL BACKGROUND

As alleged in the complaint and set forth in defendant’s summary judgment

motion, only one material fact was purportedly disputed as discussed below.

Defendant issued a fire insurance policy to a Sun City residence owned by Leslie

Bollockus, the named insured. The mortgage lender on the property was First Mortgage.

One condition of the policy was that an action against defendant be brought within two

1Three companies are separate but related entities: California Casualty Insurance Company, California Casualty Management…