Development company sues insurer and bank over fire loss
A development corporation has filed suit against the insurance company that it claims failed to adequately pay it for damages caused to a home in a fire and against the bank that wrongly cashed a check issued to it.
Riverfront Civic Development Corporation claims it entered into an agreement for deed with James Moore on Oct. 1, 2007, for property at 1125 Margaret Dr. in Cahokia. Under the agreement, Moore was supposed to insure the property, according to the complaint filed May 31 in St. Clair County Circuit Court.
Moore did secure an insurance policy with defendant North Pointe Insurance Company. When a fire destroyed the premises on Aug. 25, 2010, North Pointe issued a check to Moore and Riverfront Civic Development Corporation for $8,500, the suit states.
Moore endorsed the check and cashed it at Cahokia More 4 Less, the complaint says. However, Riverfront Civic claims it had not also signed the check. Therefore, Cahokia should not have paid Moore the money, according to the complaint.
In addition, Riverfront claims it should have received significantly more than the $8,500 North Pointe was willing to pay it.
"That the settlement payment of $8,500 by defendant, when compared to the $45,000 market value of the property, demonstrates that its claim adjustment figure was so low as to be vexatious and unreasonable," the suit states.
North Pointe has refused to negotiate with Riverfront Civic on the price it will pay for the fire, the complaint says.
In its complaint, North Pointe seeks payment of the actual loss of the property, plus attorney's fees, statutory penalties and other relief the court deems just.
It will be represented by Charles W. Courtney Jr. of Courtney, Clark and Mejias in Belleville.
St. Clair County Circuit Court case number: 12-L-290.