Civil Procedure Keyed to Yeazell
Paragon Molding, Ltd v. Safeco Insurance Company
There was a fire at Paragon Molding, Ltd. (Paragon) (P) which damaged both real estate and inventory for its business. Paragon (P) sued American Economy Insurance Company (AEIC) for wrongfully withholding payment of the fire insurance policy from Paragon (P). AEIC was willing to pay but put the condition that all those who owed sums to Paragon (P) should first state their claims in an official forum. AEIC put $ 1,334,812.98, being proceeds from the fire insurance policy in court funds, so that the various claims could be settled. The list of claimants to the insurance proceeds were Paragon (P), Miller Industries who owned the real estate on which the Paragon (P) plant stood, the Alex N.Sill Company which helped the Paragon management to prepare the claim for fire insurance, the two Rhodes brothers who held non-realty assets in Paragon (P) which were consumed in the fire, and JP Morgan Chase Bank, which had advanced loans to Paragon (P).
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