328 F.3d 411 (8th Cir. 2003), 02-2285, United Fire & Cas. Ins. Co. v. Garvey

Docket Nº:02-2285
Citation:328 F.3d 411
Party Name:United Fire & Cas. Ins. Co. v. Garvey
Case Date:May 06, 2003
Court:United States Courts of Appeals, Court of Appeals for the Eighth Circuit
 
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328 F.3d 411 (8th Cir. 2003)

UNITED FIRE & CASUALTY INSURANCE COMPANY, Plaintiff--Appellee,

v.

Paul GARVEY; Defendant--Appellant,

Fenton, L.L.C., Intervenor--Appellant.

No. 02-2285.

United States Court of Appeals, Eighth Circuit

May 6, 2003

Submitted: Jan. 15, 2003.

Mark T. McCloskey, argued, Clayton, MO, for appellant.

Thomas M. Ward, argued, St. Louis, MO (Robert W. Cockerham, on the brief), for appellee.

Before BOWMAN, RICHARD S. ARNOLD, and BYE, Circuit Judges.

BYE, Circuit Judge.

Paul Garvey and Fenton, L.L.C. (Fenton) appeal the district court's grant of summary judgment in favor of United Fire & Casualty Insurance Company (United Fire). We reverse.

I

Viewed in the light most favorable to Paul and Fenton, the record reveals the following facts. Paul's parents, James and Beverly Garvey, buy, renovate and resell residential property; sometimes through

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their corporation, Garvey Home Development Corporation, and at other times in their individual names. Paul lives with his parents and works for Garvey Home Development. In 1995, James and Beverly bought a piece of residential property to renovate and resell. Paul took charge of the renovations, and James instructed him to obtain insurance coverage on the property. Paul called the family's insurance agent, Dan Hebbeln, and told him his parents had recently purchased another piece of property and needed it insured. Paul previously obtained insurance through Hebbeln in the same manner for other properties owned by his parents, and each time Hebbeln knew Paul was acting on behalf of his parents. Hebbeln completed an application which Paul reviewed and signed, and United Fire issued a policy of insurance listing Paul Garvey as the named insured. Paul reviewed the application and policy and did not request any changes to the identity of the named insured contained on the insurance application or policy. The initial policy premium payment was made directly to Hebbeln using a personal check issued by James and Beverly. Each of the twelve subsequent premium payments was also paid by James and Beverly with a check drawn on their bank account.

On February 28, 1997, the residence was destroyed by fire. 1 Paul reported the loss to Hebbeln who notified United Fire. Shortly thereafter, Fenton exercised an option to buy the property from James and Beverly and took an assignment for the insurance proceeds. After reviewing the proof of loss claim submitted by Paul, United Fire denied the claim arguing Paul, as the named insured, had no insurable interest in the property. United Fire also claimed the policy was void...

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