Beveridge v. Savage

Summary

The Nebraska Supreme Court reviewed whether a residential lease expressly allowed a landlord’s insurer to pursue a subrogation claim against tenants for fire damage allegedly caused by negligence. The court held that the lease’s requirements for liability and renter’s insurance did not expressly require insurance on the realty or provide a subrogation right, so the tenants remained presumed coinsureds under the landlord’s fire policy. The court affirmed summary judgment for the tenants.

Holdings

1. Absent an agreement to the contrary, a tenant is presumed to be a coinsured under the landlord's fire insurance policy, and the landlord's insurer cannot maintain a subrogation action against the tenant for negligently caused damage to the insured property.
2. The lease's requirement that the tenant obtain liability and renter's insurance did not expressly require fire insurance on the realty, transfer the risk of fire loss to the tenant, or grant the landlord or insurer a right of subrogation; therefore, it was insufficient to overcome the coinsured presumption.
3. Summary judgment for the Savages was proper because there was no genuine issue of material fact and, as coinsureds, the Savages were entitled to judgment as a matter of law against the landlord's subrogation claim.

Questions Presented

1. Whether the lease expressly rebutted the presumption that the tenant was a coinsured under the landlord's fire insurance policy.
2. Whether the lease's requirements that the tenant obtain liability and renter's insurance were sufficient to permit the landlord's insurer to bring a negligence-based subrogation action against the tenant for fire damage.
3. Whether summary judgment for the tenants was proper.

Disposition

affirmed