Pennsylvania Co. for Insurances on Lives & Granting Annuities v. Central Trust & Savings Co.

Citations

• 255 Pa. 322
• 99 A. 910
• 1917 Pa. LEXIS 454

Syllabus

<p>Contracts — Insurance—Title insurance — Building operation — Guarantee of completion — Construction—Mortgages — Release — Subrogation. ■</p> <p>1. Clauses in a policy of title insurance must be construed in view of the _subject-matter insured and if its general language does not apply or becomes meaningless or inoperative it will be ignored in determining the liability of the parties.</p> <p>2. A policy issued by a title company in favor of the mortgagee of real estate upon which buildings were to be erected, insured the mortgagee against “actual loss or damage......which the said insured shall sustain by reason of the noneompletion of the premises” and provided that “whenever the company shall have settled a claim under this policy, it shall be entitled to all the rights and remedies which the insured would have had against any other person or property.......If the payment made by the company does not cover the loss of the insured, it shall be interested in such rights with the insured, in the proportion of the amount paid to the amount of the loss not hereby covered. And the insured warrants that such right of subrogation shall vest in the company, unaffected by any act of the insured”......“All interest in this policy (saving for damages accrued) shall cease upon the transfer of the title insured, except where this policy is' transferred with the approval of the company. Partial transfers of titles shall reduce the liability of the company upon this insurance in the proportion of the value of the estate transferred to that retained.” The mortgagor defaulted, and after default two of the properties were released from the lien of the mortgage without the consent of the title company. The remaining properties were conveyed to a nominee of the mortgagee. Thereafter it appeared thát the buildings had not been fully completed. The mortgagee had no right to complete the buildings. Upon the title company’s failure, after notice, to complete the buildings, the mortgage