Safeco Insurance Co. V. Jmg Restaurants Inc‪.‬

Respondent JMG Restaurants, Inc., owned and operated the Trojan Horse Restaurant in Seattle, Washington. Respondent Joe M. Giese owned the corporation. The corporation and Joe M. Giese were named insureds under a fire insurance policy issued by appellant Safeco. The restaurant was damaged by fire on May 9, 1975. The fire department arson squad suspected Mr. Giese of arson. On August 6, 1975, the King County prosecuting attorney charged Mr. Giese with arson and with attempted grand larceny. On August 18, 1975, appellant rejected a proof of loss submitted by Mr. Giese on the ground that it did not comply with the policy. On October 7, 1975, the King County prosecutor dismissed the criminal charges that had been filed against Mr. Giese.