Freeman v. Commercial Union Assurance Company

FANNING, Justice.

Roy J. Freeman and D. H. Lee sued Commericial Union Assurance Company, Ltd., upon a policy of fire insurance issued by said company insuring Freeman and Lee against loss by fire of a certain building owned by Freeman and mortgaged to Lee. The amount of the policy was $3,750, and Lee’s debt, secured by a mortgage on the building, was greater than the amount of the policy. The insurance company first denied liability as to both Freeman and Lee but later admitted liability as to Lee and paid him $3,750, the full amount of the policy.

The insurance company then filed its second…