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Contracts Keyed to Ayres
Kossian v. American National Insurance Co.
Facts
Reichert owned the Bakersfield Inn and held four fire insurance policies on it. Each of the policies contained provisions for covering the costs of cleaning up fire damage and removal of debris. Defendant held a deed of trust on the property. A portion of the Inn was damaged by fire and Reichert hired Plaintiff to clean up the damage and remove any debris for $18,900. Defendant was unaware of this agreement between Reichert and Plaintiff. After the work was done, Reichert declared bankruptcy. The bankruptcy trustee abandoned the property as well as an interest in the four fire insurance policies. Reichert assigned the policies to Defendant, who submitted clams and obtained $135,620 from the policies. This payment included some portion of the cost of debris removal and clean up, but it is not clear how much. Plaintiff sued for the amount owed him for labor and materials under the theory of unjust enrichment, arguing that Defendant received both the actual labor and materials and the payment from the insurance policies for that labor and materials. The trial court granted summary judgment in favor of Defendant and Plaintiff appealed.
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