Buckeye State Mut. Ins. Co. v. Humlicek

Owners of a duplex insured a building through two concurrently issued, identical policies - one for each unit. A fire damages the entire structure, and Insurer paid the owners' claims under both policies. Insurer then brought this action to determine its subrogation rights against the tenant (Tenant) of one of the duplex units, who was allegedly negligent in starting the fire. Insurer conceded the pursuant to Tri-Par Investments v. Sousa, Tenant was an implied coinsured under the policy covering the unit he lived in. Therefore, Insurer sought to recoup payments made for the damage only to the unit Tenant did not live in. The district court granted Tenant's motion for summary judgment and dismissed the action. The Supreme Court affirmed, holding that the district court did not err in (1) granting Tenant's motion for summary judgment, as the rule in Tri-Par Investments applies to bar subrogation against a duplex tenant as to both sides of the building; (2) ruling that Tenant was a coinsured with Owners under Nebraska law; (3) failing to rule that Insurer was allowed to subrogate against Tenant; and (4) denying Insurer's request for declaratory judgment. View "Buckeye State Mut. Ins. Co. v. Humlicek" on Justia Law