Sixth Circuit Court Of Appeals Affirmed Summary Disposition Obtained By Michael F. Schmidt In Claim For Property Insurance

Nationwide Mutual Fire Insurance Company v Kasey McDermott, U. S. Court of Appeals for the Sixth Circuit, docket number 14-1623 (2015). The Sixth Circuit Court of Appeals affirmed summary judgment granted by the trial court that Nationwide did not have to provide property loss coverage to its insured for property damages alleged in excess of $490,000 from a fire loss. The court addressed only one of multiple coverage defenses holding that the claim was barred by the plaintiff’s failure to comply with the policy condition requiring a notice of a change in use or occupancy of the premises by failing to advise the insurer that the basement of the home had been converted into a marijuana processing facility. The court also affirmed the summary judgment granted by the trial court that the plaintiff had to reimburse Nationwide for payments made after the loss and also that Nationwide was subrogated to the loss payee to recover from the insured the $131,859.29 paid to the loss payee.