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K & T ENTERPRISES, INC. v. ZURICH INS. CO.

Nos. 94-2220, 94-2224.

97 F.3d 171 (1996)

K & T ENTERPRISES, INC., d/b/a Dairy Queen of Blissfield, and Tahani Khoury, Plaintiffs-Appellees, Cross-Appellants, v. ZURICH INSURANCE COMPANY, Defendant-Appellant, Cross-Appellee.

United States Court of Appeals, Sixth Circuit.

Decided October 9, 1996.

Attorney(s) appearing for the Case

Stuart A. Sklar (argued and briefed), Jo Robin Davis (briefed), Michael H. Fabian (briefed), Fabian, Sklar & Davis, Farmington Hills, MI, for K & T Enterprises, Inc., Tahani Khoury in Nos. 94-2220, 94-2224.

John W. Knight, Southfield, MI, Ignatius John Melito (argued and briefed), Melito & Adolfsen, New York City, John J. McInerney, Leahy, Einsenberg & Fraenkel, Chicago, II, for Zurich Insurance Company in Nos. 94-2220, 94-2224.

David S. Swartz, Bruce N. Elliott, Joseph W. Phillips, Conlin, McKenney & Philbrick, Ann Arbor, MI, for Society Bank, Michigan in No. 94-2224.

Before: MERRITT, CONTIE, and BOGGS, Circuit Judges.

BOGGS, Circuit Judge.

When is fire not the enemy of ice? When the 50% shareholder of a failing Dairy Queen franchise in Blissfield, Michigan torches that franchise outlet for profit, and his wife, who also owns 50% of the franchise, is still permitted by a district court upon a jury verdict to collect fire insurance proceeds for the damage caused by the arson. We reverse this decision, which, if left to stand, would encourage individuals to use the corporate veil...

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