The plaintiff mortgagee brought a motion for summary judgment against the defendant insurer to recover the shortfall on a mortgage following a fire at the insured property and a subsequent power of sale.
The insurer denied the claim, arguing the mortgagee was only entitled to the actual cash value of repairs and had failed to file a timely proof of loss.
The court granted summary judgment, holding that the standard mortgage clause created a separate contract between the mortgagee and insurer, entitling the mortgagee to recover its shortfall regardless of the mortgagor's actions or the lack of repairs.
