Legal Question in Insurance Law in New Jersey

Insurance Settlement After Fire Misappropriate by the Bank

Does a bank have fudiaciary responsibility when it has custody of the insurance settlement. More so when the bank is aware the client is intending to rebuild. In my case the settlement was given to the bank and the bank used the same money to hire an appraiser to oversee the construction. The money was supposed to be reimbursed as each phase of the contruction is complted. The bank apparently disbursed all the money to the contrator without the contractor finishingthe house. Then bank refused a to refinance the house so that I can complete the house. During this whole saga I never broke the mortgage contract with the bank. The court agreed with the bank that they were not responsible but without the legal background I find this fishy


Asked on 1/24/07, 4:03 pm

1 Answer from Attorneys
Scott Diamond DIAMONDLAWYER

Re: Insurance Settlement After Fire Misappropriate by the Bank

there are many issues in this. How much money is at issue and where are you located? I would need to know a lot more to give you an informed opinion. Why did the bank get the money? Who was in charge of the construction? What did the contracts say? Why did the bank release the funds without your approval? You are going to need an attny to deal with this.

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Answered on 1/24/07, 4:29 pm


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