Insurance Proceeds – Foreclosure

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WI Court of Appeals – District III

Case Name: Bruce Middleton et al v. American Family Mutual Insurance Company, et al

Case No.: 2015AP52

Officials: Stark, P.J., Hruz and Seidl, JJ

Focus: Insurance Proceeds – Foreclosure

Bruce and Angela Middleton appeal a summary judgment granted in favor of Wells Fargo Bank, N.A. and Select Portfolio Servicing, Inc. (collectively, Wells Fargo), declaring Wells Fargo is entitled to proceeds owed under the dwelling coverage section of a property insurance policy issued by American Family Mutual Insurance Company. The Middletons argue the terms of the mortgage do not give Wells Fargo the right to claim the insurance proceeds and Wells Fargo waived any claim to the insurance proceeds by electing foreclosure in lieu of a deficiency judgment. The Middletons also contend the note they signed was discharged in bankruptcy and, therefore, cannot be enforced. Alternatively, the Middletons argue Wells Fargo is estopped from seeking more than $95,017.57 from the subject insurance policy proceeds. For the reasons stated below, we reject these arguments and affirm the judgment.

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.