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Insurance-Right Of Lessor To Retain Proceeds When Lessee Under Duty To Repair

Michigan Law Review

Plaintiff, lessee, covenanted to keep the leased premises in repair. His lease contained an option to purchase. During his term the building burned, and the lessor recovered on his policy. The plaintiff then elected to exercise his option, and, upon vendor's refusal to apply the insurance proceeds on the purchase price, brought this action against the lessor and the insurer. Plaintiff's argument, that, had he repaired, the loss would actually have fallen on him, and that his purchase had the same ultimate effect, did not appeal to the court, and it was held that defendant-lessor-vendor might retain the insurance money. …