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Property Law Keyed to Cribbet
Sanford v. Breidenbach
Facts
Sanford agreed to sell to Breidenbach a parcel of property along with a home situated thereupon for $26,000. Possession of the property, according to the contract, was to pass when title was transferred. Breidenbach did receive two keys to the house and entered inside to check the heating oil situation. The back of the contract provided that Sanford would provide a septic system easement agreement prior to the transfer of title. While the papers necessary to the transfer were being prepared, the house was destroyed by fire. Breidenbach instructed his bank, which was to loan him the purchase money, not to file the deed of record, which had been placed in escrow with the bank. When Breidenbach executed the contract for purchase, he also secured from Northwestern Mutual Insurance Company a policy of insurance of $22,000 to cover him in the event that the property was destroyed by fire. Sanford had maintained insurance on the property in the sum of $20,000. The policy was cancelle d without permission from Sanford by the agent of the insurance company. The court found the unilateral cancellation to be ineffective, and that the policy was in full force and effect at the time of the loss. Sanford sued Breidenbach and Northwestern Mutual Insurance Company seeking specific performance of the contract to purchase the lands. Breidenbach cross-petitioned and brought Insurance Company of North America (Sanford’s insurer) into the case. $12,000 had been deposited by Breidenbach into escrow pending the delivery of title. The lower court found that Sanford was not entitled to specific performance, but that Sanford should recover a portion of each insurance policy.
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