U.S. District Court – Assignment Of Insurance Proceeds

In American Guarantee & Liability Ins. Co. v. 51 Roses Mill LLC, a fire destroyed property that was owned by Bridge33 Capital LLC ("Bridge33"), insured by Plaintiff American Guarantee & Liability Insurance Company ("American Guarantee"), and under contract for sale to Defendant 51 Roses Mill LLC ("51 Roses"). The contract included an assignment of insurance proceeds payable for the loss. American Guarantee sought a declaratory judgment that Bridge33's assignment of its insurance claim to 51 Roses following the fire was invalid or that, if the assignment was valid, the amount that 51 Roses may recover under the policy was the actual cash value of the lost Property and did not include any claim to replacement cost value. American Guarantee argued that no assignment of the right to receive replacement cost value occurred because, at the time of assignment, Bridge33 had not satisfied the condition precedent of rebuilding the destroyed structure within two years and