American Home Assurance Company v. Vaughn

OPINION

HATHAWAY, Chief Judge.

Defendant American Home Assurance Company (American) appeals from a denial of its motion for a reduction of damages.

Prior to this action, plaintiff William Vaughn executed a mortgage agreement in favor of Associated Mortgage and Invest ment Company (the mortgage company). He signed a note secured by the mortgage which was to be paid in monthly installments over a period of years. Pursuant to a contract between the mortgage company and American, American agreed to insure any mortgagor of the mortgage company under an optional group plan. In consideration of a…