Insurance Co. of North America v. Universal Mortgage Corp. of Wisconsin

The issue presented is whether the plaintiff insurance company has stated a claim upon which relief can be granted against its insured for the recoupment of a payment previously made to its insured when the insured, after the issuance of the insurance policy, but before the physical loss of the property for which the indemnity had been paid, had executed a lease agreement with its landlord which exculpated the negligent landlord for any liability for an insured loss and thereby foreclosed the insurance company’s right of sub-rogation against the landlord tortfeasor.

The insured’s motion,…