Niagara F. Ins. v. Fidelity Co.

Citations

• 123 Pa. 516
• 16 A. 790
• 1889 Pa. LEXIS 677

Syllabus

<p>(a) A policy of fire insurance expressly provided that when the insurers should claim that the fire was caused by the wrongful act or omission of another, creating a cause of action, the assured on receiving payment on the policy should assign such cause of action to the insurers.</p> <p>(b) After a gas explosion chargeable to the negligence of a gas company and resulting in damages to the building and loss by fire, the assured, before payment upon the policy, settled with and released the gas company from all claims arising out of the explosion, the release not to affect the claims of the assured against insurance companies.</p> <p>1. In such case, the covenant of the insurers for payment of the loss by fire, being made dependent up on the covenant of the assured to assign the cause of action against the wrong-doer, performance by the insurers could not be enforced without performance or an offer to perform by the assured. *</p> <p>2. The effect of the release of the gas company, whether saving the rights of the insurers against the wrong-doer, or whether making performance of the covenant of the assured to assign the cause of action impossible or useless, not decided.</p>