Paul C. Allen and Marjorie Allen v. Safeco Insurance Company of America

GODBOLD, Chief Judge:

Shortly after their home was destroyed by fire, Paul and Marjorie Allen filed a claim for their loss pursuant to an insurance policy issued by Safeco Insurance Company. Safeco denied liability. The Al-lens filed suit in the Florida state court seeking payment under the policy. The case was removed to the U.S. District Court, N.D. Florida.

Safeco sued in the federal court, seeking declaratory relief “as to its duties to the Allens under the policy, and the cases were consolidated for trial. In both cases Safeco raised arson as a defense. Later Safeco paid two mortgagees for…