U.S. Bank, N.A., as Servicer for the Tennessee Housing Development Agency v. Tennessee Farmers Mutual Insurance Company

OPINION

in which HOLLY M. KIRBY, J., and J. STEVEN STAFFORD, J., joined.

U.S. Bank, N.A. (“Bank”) had a mortgage on a residence which was insured against fire loss by Tennessee Farmers Mutual Insurance Company (“Tennessee Farmers”). When the owner of the residence failed to pay the mortgage, the Bank commenced foreclosure proceedings. Thereafter, the owner filed for bankruptcy which stayed the foreclosure proceedings. After the residence was destroyed in a fire, the Bank filed a claim to recover the insurance proceeds. Tennessee Farmers refused to pay the claim. As a result, the Bank filed suit…