The plaintiff Frank Cesar 45 years old, and resident of Hamilton was a previous client of the defendant Red Wood Insurance Company and had purchased a homeowner's policy to insure his home on November 2, 2018. Mr. Cesar's four-bedroom home is 2,800 square feet and is in Hamilton at 1891Breswick Crescent. Frank is the only person who lives in the home. Estimated worth of Mr. Cesar's home is $1,000,000.During Redwood's application process Mr. Cesar revealed answered all questions, and even allowed a risk control on site to inspect the premises. Three months after receiving insurance Mr. Cesar experienced a house fire in his basement on February 1, 2019, which resulted in a total loss. Estimated damages caused to Mr. Cesar's home totaled $2,500,000 which included the structure of the home and his personal property. Mr. Cesar filed the claim on February 12, 2020. Upon an intense claims investigation Redwood denied Mr. Cesar's claim, as it was revealed he was running an illegal grow operation to manufacture marijuana. Redwood Insurance Company was not notified of the grow operation in Mr. Cesar's basement. Mr. Cesar has acted against Redwood Insurance Company and is suing them for $25,000,000 for denying theclaim. 1. Does Redwood Insurance Company have a legal right to deny Mr. Cesar's fire claim? 2. Can Mr. Cesar take legal action against Redwood Insurance Company?