Also known as: casualties · casualty loss · casualty insurance
Written by attorneys · grounded in primary & secondary sources — see below
Damage to or destruction of identified property or goods resulting from an unforeseen event such as fire, storm, or accident. The event must occur without fault of the parties and before risk of loss has passed in a transaction involving those specific items.
Cascade Manufacturing contracted to sell Chloe Chen a specific batch of custom machinery identified by serial number in the warehouse. Before risk of loss passed, a forklift accident crushed several units. Chloe may treat the contract as avoided or accept the remaining units with a price allowance.
Crestview Holdings mortgaged an office building to Crown Pharmaceuticals. Without consent, Crestview let the casualty insurance lapse. A storm then damaged the roof. The mortgagee may treat the lapse as waste and pursue foreclosure or damages for the resulting impairment.
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Cameron Cruz leased a warehouse from Coastal Shipping under a covenant to maintain and surrender the premises in good condition. A fire destroyed interior improvements. Absent express language requiring rebuilding after casualty, Cameron owes no duty to restore the structure.
Christine Castro obtained a policy on her home after using it as collateral for a loan. When a storm caused damage, the insurer paid under the casualty coverage. The policy protected both the owner and the lender's interest in the property.
Camila Cervantes brought a shareholder derivative suit against a corporation whose property suffered storm damage. The company's casualty insurer became relevant to the claim. The forum state's interest in corporate governance supported jurisdiction over the parties.
Carmen Choi challenged a state law that treated casualty insurance proceeds differently based on marital status. The statute affected recovery after an accident destroyed insured property. The Court evaluated whether the classification survived constitutional scrutiny.
Casualty to goods identified at contracting excuses performance if the loss occurs without fault before risk passes to the buyer. Total loss avoids the contract entirely. Partial loss allows the buyer to inspect and either avoid or accept with a price allowance.
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Failure to maintain required casualty insurance constitutes waste when the mortgage documents impose that duty. The mortgagee may then exercise remedies including foreclosure if the omission impairs security. The definition of waste expressly includes breach of insurance covenants.
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A tenant is not liable to rebuild after fire or other casualty unless the lease expressly requires restoration following such events. General covenants to maintain and surrender in good condition do not extend to post-casualty reconstruction.
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…eschews the history of the Fourteenth Amendment in its reliance on the "compelling state interest" test. See Weber v. Aetna Casualty & Surety Co. , 406 U. S. 164, 179 (1972) (dissenting opinion). But the Court adds a new wrinkle to this test by transposing it from the legal considerations associated with the Equal…