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DRAFT FOR ATTORNEY REVIEW — NOT FINAL

City of St. Louis v. Goldenberg, 529 S.W.2d 33 (1975)

Citation
City of St. Louis v. Goldenberg, 529 S.W.2d 33 (1975)
Parent Document
City of St. Louis v. Goldenberg, 529 S.W.2d 33 (1975)
Jurisdiction
Missouri (state)
Effective Date
1975-10-14

Full Text

1,814 chars
Concerning.the receivers’ failure to insure, we find the property was uninsura-ble and the fund available insufficient to pay the premiums. As mentioned above, a policy of fire insurance had been purchased and maintained on the property by the mortgage holder before the receivership. This Home Insurance Company policy purchased through “Fair Plan” 5 provided there would be no coverage if the property were unoccupied more than sixty days. By December, 1971, the building was totally vacant, the utilities had been cut off at least four or five months prior to the fire, and in February, 1972, the building inspector condemned the property, informing the owners the property must be repaired or be torn down. A representative of the Home Insurance Company explained his company would not have insured the property when the policy expired in January, 1971, unless ordered to do by the “Fair Plan.” Mr. Bernard, the manager of “Fair Plan,” testified that the “Fair Plan” would not have required renewed coverage on the property since property taxes were three years delinquent at the time of the fire. The statute and the court’s order gave the receiver authority to insure but the uninsurability and lack of funds effectively vitiated this responsibility. It is the general rule that “[a] receiver, acting in good faith and within the authority conferred on him, is not liable in his personal capacity for losses resulting from . . . failure to insure property.” 75 C.J.S. Receivers § 189, p. 835; Meltzer v. Grazi, 10 A.D.2d 869, 200 N.Y.S.2d 733, 735 (1960), app. dism. 8 N.Y.2d 911, 204 N.Y.S.2d 154, 168 N.E.2d 828 (1960), app. den. 11 A.D.2d 948, 206 N.Y.S.2d 553 (1960). From this record we cannot say the receiver acted other than in good faith and within the authority conferred by the order of the court.