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Contracts Keyed to Dawson
East Providence Credit Union v. Geremia
Facts
The mortgage contained a clause that obligated the Defendants to maintain insurance on the wagon, but Mr. Geremia was sick and the Defendants were unable to pay their installment loan or the insurance. Mrs. Geremia explained the situation to the Plaintiff’s employee, and the Plaintiff agreed to pay the overdue insurance premium. Pursuant to the mortgage terms, the premium would then be added to the balance owed by the Defendants. Two months after the Plaintiff agreed to pay the premium, there was a mishap and the wagon was destroyed. The insurance company refused to pay for the loss because the Plaintiff had never paid the premium. The outstanding balance on the loan was $987.89, the Plaintiff applied $200 of Defendants’ savings shares and brought suit to recover $779.53 from the Defendants. The Defendants counterclaimed for their $200 back. The superior court dismissed the Plaintiff’s complaint and found for the Defendants on their counterclaim.
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