St. Paul Mercury Insurance v. Baughman

This action arose out of defendants’ claim of coverage under a fire insurance policy issued by plaintiff. Defendants filed proofs of loss for $111,250 for personal property and $109,819 for business interruption caused by a fire at their furniture store. Plaintiff rejected defendants’ claim' and filed this action for a declaratory judgment, seeking a declaration that there was no coverage under the insurance policy.

Plaintiffs complaint raised two claims to support its refusal to pay defendants’ loss. First, “any loss suffered as a result of the fire was intentionally caused by [defendants].”…