Nonprofit’s agreement to pay only insurance proceeds does not vitiate claim

A nonprofit school’s agreement to pay a contractor only its insurance proceeds to repair hurricane damage does not vitiate its claim against the insurance company for damages. A federal District Court in Florida has held that the contractor’s willingness to benefit the school does not relieve the carrier of its obligation.

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May 30, 2025

The loan agreement says: “All contractual rates of interest chargeable on the outstanding Term Loans shall continue to accrue and be paid even after default, maturity, acceleration, judgment, bankruptcy, insolvency proceedings of any kind or the happening of any event or occurrence similar or dissimilar.”

A former banker friend says that “any event or occurrence similar or dissimilar” is some lawyer “fancy talk” for “the kitchen sink!”

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Nonprofit’s agreement to pay only insurance proceeds does not vitiate claim

Nonprofit’s agreement to pay only insurance proceeds does not vitiate claim