Apparently, property owners setting their buildings on fire to collect the insurance is a thing in Pennsylvania, the location of our story. We say this because the Pennsylvania legislature adopted a statute which requires that before an insurance company pays out proceeds from a fire policy to a “named insured,” it check with the local municipality to see if any property taxes are owed on the property. If so, the municipality grabs the payout to satisfy the delinquent taxes.
You can kind of see where this is going, can’t you? Yes, one entity owned the burned building, while another entity was the named insured.
We usually leave insurance matters to our law partner Tred Eyerly, who blogs about insurance coverage and related matters. Stuff like that is above our pay grade, and we defer to professionals.
But the U.S. Court of Appeals’ opinion in Trustees of Conneaut