Skauge v. Mountain States Telephone & Telegraph Co.

On September 10, 1973 the rented home of John and Linda Skauge in Billings, Montana was destroyed by an explosion and fire which consumed all of their personal possessions. The Skauges had a fire insurance policy with Unigard Insurance Group (Unigard), which insured the Skauges’ personal property to the extent of $4,000 plus $400 for incidental living expenses in case of loss. This policy contained the following provision:

“Subrogation: This Company may require from the insured an assignment of all right of recovery against any party for loss to the extent that payment therefore is made by…