Fired builder cannot demand direct payment from fire insurer
Sparkle Builders I, Ltd. sued George and Brenda Boines and Farmers Insurance Exchange, arguing that the insurer should make direct payment to Sparkle for the profit it would have earned in remediating the Boines' fire-damaged home. The Boines had retained Sparkle to make repairs and had fully paid the builders to make temporary repairs and "board up" the home. The Boines were apparently dissatisfied with Sparkle's work and refused to retain them to make permanent repairs. The builders then attempted to seize their insurance payments from Farmers in order to recoup the profit the builders "would have earned" under the contract.
The Court denied them this remedy, noting that the "irrevocable assignment" of insurance proceeds in the builder's contract applied only to money actually due for repairs effected and the assignment was terminated when the contract was revoked.