Roy Malone vs. Harleysville Mutual In. Co.

This matter involves a dispute concerning a fire and casualty insurance policy ("Policy") which covered an apartment complex, Star Chase Apartments. Harleysville Mutual Insurance Company ("Defendant") was the insurance carrier, and the named insured was John L. Oliver, LLC ("Oliver"). A fire in one of the apartment buildings caused substantial damage. Approximately six months later, Oliver sold Star Chase to Roy M. Malone, Sr. ("Plaintiff"), prior to starting any repairs to the burned building. Oliver also assigned to Plaintiff his right to the proceeds under the Policy, and Defendant acknowledged this assignment. The Trial Court found that Plaintiff, as Oliver's assignee, was entitled to recover the replacement cost of the burned building, plus prejudgment interest. The Trial Court denied Plaintiff recovery for business loss. Plaintiff appeals the amount awarded to him as the replacement cost and the Trial Court's denial of any additional recovery for business loss. Defendant argues that the assignment of the "proceeds" to Plaintiff did not entitle Plaintiff to recover any amount as replacement cost for repairs done after the assignment. Defendant also objects to the amount of the replacement cost found by the Trial Court and to the awarding of prejudgment interest. We reverse the Trial Court's award of prejudgment interest and affirm all other aspects of the judgment.