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FIRST SEC. BANK OF UTAH v. SHIEW

No. 16261.

609 P.2d 952 (1980)

FIRST SECURITY BANK OF UTAH, a National Association, Plaintiff and Respondent, v. Bill SHIEW, Linda Shiew, and Utah Farm Bureau Insurance Company, a Utah Corporation, Defendants and Appellant.

Supreme Court of Utah.

March 13, 1980.

Attorney(s) appearing for the Case

G. Blaine Davis of Morgan, Scalley, Lunt & Kimble, Salt Lake City, for Utah Farm.

Eric Swenson, Mexican Hat, for Shiew.

Don Allen, James W. Gilson of Ray, Quinney & Nebeker, Salt Lake City, for plaintiff and respondent.

MAUGHAN, Justice:

Utah Farm Bureau Insurance Company appeals from a judgment of the District Court awarding to First Security Bank of Utah the sum of $4,369.25, plus interest and costs, for the wrongful disbursement of fire insurance proceeds. The bank's claim is contingent on whether the insured premises were security by reason of a dragnet clause in a mortgage thereon for a subsequent, unrelated business transaction of the mortgagors. The judgment is reversed, and...

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