American Fire & Indemnity Co. v. Citizen's National Bank

EDWARDS, Judge.

This action commenced as a concursus proceeding invoked by American Fire and Indemnity Company to determine each claimant’s legitimate portion to the fire insurance policy proceeds it deposited into the registry of the court. The claimants to the $60,000.00 deposit are Jerry Morgan, the insured, Citizen’s National Bank, the first mortgagee, and First Guaranty Bank, the second mortgagee.

On September 26, 1982, a fire completely destroyed Jerry Morgan’s house, which was insured by American. The Morgan’s homeowners policy listed Citizen’s and First Guaranty as the loss payees.…