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IRON HORSE AUTO, INC. v. LITITZ MUT. INS. CO.

No. 96,772.

156 P.3d 1221 (2007)

IRON HORSE AUTO, INC., Appellee, v. LITITZ MUTUAL INSURANCE CO., Appellant, and Capital City Bank, Appellee, v. Lititz Mutual Insurance Co., Appellant, and Iron Horse Auto, Inc., and William Frye and Peggy Frye, Husband and Wife, et al., Appellees.

Supreme Court of Kansas.

April 27, 2007.

Attorney(s) appearing for the Case

Steve R. Fabert, of Fisher, Patterson, Sayler & Smith, L.L.P., of Topeka, argued the cause and was on the briefs for appellant.

Todd A. Luckman, of Stumbo, Hanson & Hendricks, L.L.P., of Topeka, argued the cause and was on the briefs for appellee Capital City Bank.

Charles N. Henson and Allison M. Kenkel, of Wright, Henson, Clark, Hutton, Mudrick & Gragson, LLP, of Topeka, were on the brief for amicus curiae The Kansas Bankers Association.

The opinion of the court was delivered by JOHNSON, J.:

Lititz Mutual Insurance Company (Insurance Company) appeals from the summary judgment in favor of Capital City Bank (Bank), whereby the district court found that the Insurance Company's commercial insurance policy provided for a loss payment to the Bank, as mortgageholder, notwithstanding the named insured's filing of a fraudulent claim. The Insurance Company contends that K.S.A. 40-2,118(c) excused the payment...

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