Schedule a Consultation | Toll Free: 1-800-678-1307
Trial lawyers specializing in personal injury and civil litigation

Contractor cannot claim insurance proceeds where no work performed pursuant to contract

Sparkle Builders 1, Ltd. sued an insured homeowner, arguing that it should be entitled to profits from an insurance recovery after a home fire.  The homeowner insured had originally signed a contrat with the builder to make repairs on the damaged home.  Before any work was started, however, the homeowner decided to build a new home using the insurance proceeds.  The contractor then sued the insurer and the homeowner, arguing that pursuant to the contract, the builder should be entitled to collect the profit it would have earned for making repairs to the damaged home.  The builder argued that the contract was essentially an "assignment" of the insurance coverage proceeds to the builder, regardless of whether the original home was re-built.  The Court found this argument unpersuasive.
Thompson O’Neil, P.C.
309 East Front Street
Traverse City, Michigan 49684
Toll Free: 1-800-678-1307
Fax: 231-929-7262