The plaintiff mortgagors failed to maintain property insurance as required by their mortgage.
The defendant mortgagees obtained their own insurance policy to protect their interest, with the plaintiffs reimbursing the premiums.
After a fire destroyed the property, the insurer paid the mortgagees the policy limits and claimed a subrogated right to enforce the mortgage against the plaintiffs.
The plaintiffs brought a motion for summary judgment seeking a declaration that the insurer had no subrogated rights and an order discharging the mortgage to the extent of the insurance payout.
The court dismissed the motion, finding that the insurance policy was obtained solely for the benefit of the mortgagees and explicitly provided for subrogation rights against the mortgagors.