Seventh Avenue Boutique, Inc. v. Aetna Insurance

MEMORANDUM OPINION AND ORDER

SHADUR, District Judge.

Seventh Avenue Boutique, Inc. (“Boutique”) 1 sued Aetna Insurance Company (“Aetna”) for payment under a business personal property hazard insurance policy (the “Policy”). Boutique also named its secured lender, Small Business Administration (“SBA”), as a defendant, asserting-the loss payable clause under the Policy entitled SBA to all the insurance proceeds. Aetna has deposited $22,708.08 (the “Fund”) with this Court in settlement of its liability under the Policy.

At issue is the priority of two competing claims to the Fund: those of SBA and…