Old Second Nat. Bank v. Indiana Ins. Co.

2015 IL App (1st) 140265 (Ill. App., 2015)

Words & Phrases

Fire Insurance: Mortgagee Interest

Trial Judge

Hon. Raymond Mitchell

Appellate Judge

Justice Hoffman

Holding

Under a “standard” mortgage clause, mortgagee bank had coverage under property policy even though the vacancy clause defeated coverage for the named insured.

Fact Summary

The Swissland Packing Company (Swissland), a slaughterhouse and meat-packing business, formerly occupied a 35,500-square-foot building in Askum, Illinois (the building). In 2005, Swissland sold the business, and all operations at the building ceased. In late 2007, ownership of the building was acquired by Brothers Future Holdings, LLC1 (Brothers), a limited liability company owned by Arthur and David Follenweider, with the intention that a portion of the building would be used in a new custom contract cooking venture to be conducted by Custom Gourmet Concepts, LLC (Gourmet Concepts). However, in 2008, David died unexpectedly, and no business operations were ever established or conducted in the building. The building was vacant from 2005 throughout the proceedings in this case.

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