Opinion ID: 1659492
Heading Depth: 1
Heading Rank: 2

Heading: First entertained is plaintiff vendee's claim to the effect trial court erroneously dismissed his case.

Text: It is to be inceptionally understood, both vendor and vendee under a contract of sale by which the equitable title passes to vendee have an insurable interest in the property. Depreciation in value, by reason of fire which consumes any structures or other involved property thereon, must be borne by vendee. And insurance proceeds paid in settlement to contract vendor are held by him in trust for contract vendee. See Kintzel v. Wheatland Mutual Insurance Ass'n, 203 N.W.2d 799, 811 (Iowa 1973); H. L. Munn Lumber Company v. City of Ames, 176 N.W.2d 813, 816 (Iowa 1970); Gard v. Razanskas, 248 Iowa 1333, 1336-1338, 85 N.W.2d 612 (1957). See also Farmers Butter & Dairy Coop. v. Farm Bur. Mut. Ins. Co., 196 N. W.2d 533, 536 (Iowa 1972). At this point several Iowa Rules of Civil Procedure come into play. In material part they provide: 23. Any number of persons who claim any relief, jointly, severally or alternatively, arising out of or respecting the same transaction, occurrence or series of transactions or occurrences, may join as plaintiffs in a single action, when it presents or involves any question of law or fact common to all of them. They may join any causes of action, legal or equitable, independent or alternative, held by any one or more of them which arise out of such transaction, occurrence or series, and which present or involve any common question of law or fact. 25(a) Except as provided in this rule, all persons having a joint interest in any action shall be joined on the same side, but such persons failing to join as plaintiffs may be made defendants. This rule does not apply to class actions under rules 42-47, nor affect the options permitted by sections 613.1 and 613.2 of the Code. 26. A party need not be interested in obtaining or defending against all the relief demanded. Judgment may be given respecting one or more parties according to their respective rights or liabilities. 28. An action heretofore cognizable only after another has been prosecuted to conclusion may be joined with the latter; and the court shall grant relief according to the substantive rights of the parties. But there shall be no joinder of an action against an indemnitor or insurer with one against the indemnified party, unless a statute so provides. At cost of some unavoidable repetition we look again to the pleaded factual situation as it relates to plaintiff vendee (Findlay). The petition alleges he is the assignee purchaser under a pre-fire loss purchase contract executed by plaintiff vendor. It is also there asserted defendant had issued to said vendor, before execution of the aforesaid contract, a fire loss insurance policy. Additionally, some of the insured property was destroyed by fire after vendee took possession under the above mentioned contract. The petition also reveals plaintiffs referentially made as a part thereof the defendant issued policy of insurance. It is further disclosed that on March 12, 1970, vendee Findlay secured from insurer a loss payable endorsement which provides, in essence, loss under the policy will be adjusted with vendee payable, however, to vendor and vendee as their respective interests may appear. This served in effect to make vendee Findlay a real party in interest. See Phoenix Insurance Co. v. Aetna Casualty & Surety Co., 120 Ga.App. 122, 169 S.E.2d 645, 649 (1969), supportively quoting 20A Appleman, Insurance Law and Practice, § 11749 (1963). See also Iowa R.Civ.P. quoted above; Gard v. Razanskas, supra ; Johnson v. Smith, 210 Iowa 591, 596, 231 N.W. 470 (1930); O'Brien v. Paulsen, 192 Iowa 1351, 1353, 186 N.W. 440 (1922); Northern Assur. Co. v. Del Moral, 300 F. 513, 514 (1st Cir. 1924); Lewis v. Guardian Fire & Life Assur. Co., 181 N.Y. 392, 74 N.E. 224, 225 (1905); Annot., 27 A.L.R.2d 444, 446-453; cf. Bartlett v. The Iowa State Ins. Co., 77 Iowa 86, 87, 41 N.W. 579 (1889). Briefly stated the record before us reveals, (1) plaintiff owner of land obtained from defendant a policy of insurance on fixtures and personalty located thereon, (2) such owner entered into an executory contract for the sale of her land, including insured fixtures and personalty, (3) that executory contract was assigned to plaintiff vendee, (4) while said contract was still in effect some of the insured fixtures and personalty were destroyed by fire, and (5) defendant insurer issued a policy loss payable endorsement providing for payment to vendor and vendee as their respective interests may appear. Under these circumstances we conclude the vendee is a proper party plaintiff and as such may join with plaintiff vendor in an action for recovery under the policy. This holding is strengthened by the fact it serves to avoid needless multiplicity of suits. Furthermore, the joinder of a vendee's action with that of a vendor runs afoul of no apparent procedural obstruction. See generally Iowa R.Civ.P. 25, 75; Kintzel v. Wheatland Mutual Insurance Ass'n, 203 N.W.2d at 806; S. P. A. Ricordi Officine Grafiche v. World Art Repr. Co., 22 F.R.D. 312, 316 (D.C.S.D.N.Y. 1958). As to the action brought by plaintiff Dale D. Findlay we reverse and remand for entry by trial court of an order overruling defendant's motion to dismiss.