The appellants challenged the trial judge’s calculation of business interruption losses under an insurance policy following a fire.
The court held that monthly mortgage interest payments were fixed obligations that necessarily continued during the interruption and were not deductible as non-continuing expenses from gross earnings.
It also rejected the argument that payment of the mortgages from fire insurance proceeds created double recovery.
The appeal was dismissed except for a conceded reduction of the judgment by the $5,000 policy deductible.
