Commerce Bank v. West Bend Mutual Insurance Company

OPINION

LILLEHAUG, Justice.

This case requires us to interpret and reconcile two clauses in a property insurance policy: a standard mortgage clause and a vacancy clause. Appellant West Bend Mutual Insurance Company (“West Bend”) issued a policy of insurance on a building. Commerce Bank was named in the policy as mortgagee. After the building was vandalized, Commerce Bank made a claim on the policy, but West Bend denied the claim under the vacancy clause. The court of appeals ruled that under the standard mortgage clause, Commerce Bank was entitled to recover. We reverse and remand.

I

In February…