Reliance Insurance v. Allstate Indemnity Co.

MEMORANDUM

GILES, District Judge.

A house subject to an agreement of sale was damaged by fire after the contract was formed, but before the closing. Seller’s insurer, Reliance Insurance Company, sued buyer’s insurer, Allstate Indemnity Company. 1 The parties have filed cross-motions for summary judgment. For the following reasons, judgment will be granted in favor of the defendant, buyer’s insurer.

For purposes of these motions, the parties have stipulated to the relevant facts. The material facts are simple. A contract to sell realty was formed. Buyer and seller agreed that the “risk of fire…