United States District Court, E.D. Michigan, Southern Division
OPINION AND ORDER GRANTING DEFENDANT'S MOTION FOR
SUMMARY JUDGMENT (DKT. 19)
TERRENCE G. BERG, UNITED STATES DISTRICT JUDGE
unsatisfied with the money recovered for property losses
under an insurance policy with Defendant, sued for more. As
the lawsuit progressed, Defendant learned that Plaintiff was
not the owner of the insured property despite having
represented on the application for insurance that it was.
Defendant now moves for summary judgment on both
Plaintiff's claims and its own counterclaim. For the
reasons stated below, Defendant's motion is
12, 2014, Plaintiff was operating a party store in Unit 2 of
a multi-unit building located at 70951 Van Dyke Road in
Romeo, Michigan when the unit was damaged by fire. Dkt. 19,
Pg. ID 106. At that time, Plaintiff had an insurance policy
with Defendant. Dkt. 19, Pg. IDs 106, 109.
the fire, Plaintiff submitted an insurance claim, and
Defendant paid Plaintiff $175, 088.81 for business personal
property loss and business income loss. Dkt. 19, Pg. ID 106.
Plaintiff was not satisfied with its recovery, however, and
filed this lawsuit seeking to recover an additional $99,
894.18 for improvements and betterments including acoustical
treatment, electrical work, heating and cooling work, and
other things. Dkt. 19, Pg. ID 106.
discovery, Defendant learned that Plaintiff did not own Unit
2. On the application for insurance, however, Plaintiff had
marked the box for “owner.”
19, Ex. 10, p. 10. In fact, Plaintiff, the corporate entity
Romeo's Party Store, Inc., had never owned Unit 2;
Vinisia Bahoura, who owned Plaintiff, had herself purchased
Unit 2 on a land contract in 2010 but lost the property to
Fifth Third Bank.
Fifth Third became the owner of Unit 2 more than two years
before Plaintiff applied for insurance. Dkt. 19, Pg. ID 110.
Fifth Third's ownership came to pass as follows:
Prior to 2010: George Adams owned all units
at 70951 Van Dyke Rd., but had loans with Fifth Third
2010: Vinisia Bahoura, owner of Plaintiff,
purchased Unit 2 from Adams via land contract
2011: Adams defaulted on loans with Fifth
Third, and a foreclosure receiver was appointed
2011: Foreclosure receiver notified Bahoura
of Adams's default, and requested that land contract
payments be made to Fifth Third. Bahoura did ...