Knight
Maryland Casualty Co. v. Knight
Opinion
Lead Opinion
Brewster, J.
STATEMENT OF THE CASE
This is an appeal from a summary judgment on appellee’s complaint for declaratory judgment, and an adverse jury verdict and judgment on appellant’s counterclaim for tor-tious breach of contract. In addition to the issues raised on appeal, we consider whether the district court abused its discretion by exercising jurisdiction over the case.
I
FACTS
Appellant Jenner Knight (hereinafter Knight) obtained a policy of fire insurance from appellee Maryland Casualty Company (hereinafter Maryland) on a commercial building he owned in San Diego. It was under partial lease to San Diego Indoor Range (hereinafter SDIR). SDIR installed gun range equipment in its leasehold to operate an indoor target shooting range.
On May 1, 1991, the building was heavily damaged by fire. Thereafter, SDIR vacated its leasehold, removed the gun range equipment from the building, and made no further payments under the lease.
At the time of the fire, the only encumbrance on the building was a first deed of trust securing a refinanced $1.35 million loan by Great American Bank. 2 The Bank was *1287 included on the Maryland policy as a “loss payee.”