Justia Insurance Law Opinion Summaries

Jennings Plant Services, LLC, and its members, Spencer and Tarin Jennings, filed a lawsuit against Ellerbrock-Norris Agency, Inc., and Elliot Bassett, alleging that Ellerbrock-Norris failed to provide competent insurance advice. Specifically, Jennings claimed that Ellerbrock-Norris advised them not to add a company-owned vehicle, a Ford F-150, to their commercial insurance policies, which led to a lack of coverage when the vehicle was involved in a fatal collision. This resulted in a significant judgment against Jennings in a federal wrongful death case brought by Kacey Kimbrough, the special administrator of the estate of Shawn Thomas Kimbrough.In the U.S. District Court for the District of Nebraska, Kimbrough obtained a judgment of $5,436,266.87 against Jennings Plant Services. As part of a partial settlement, Jennings assigned Kimbrough a right to 85% of any proceeds from their state lawsuit against Ellerbrock-Norris. Kimbrough then sought to intervene in the state lawsuit under Neb. Rev. Stat. § 25-328, claiming an interest in the litigation due to her assigned right to a portion of the proceeds.The District Court for Washington County denied Kimbrough's motion to intervene, finding that she had no direct cause of action against either Jennings or Ellerbrock-Norris and no legal interest in the subject matter of the underlying litigation. The court determined that Kimbrough's interest was indirect and insufficient to warrant intervention under § 25-328.The Nebraska Supreme Court affirmed the district court's decision, holding that Kimbrough's alleged interest in the proceeds of the lawsuit was too attenuated to constitute a direct and legal interest in the litigation. The court concluded that Kimbrough, as a mere creditor with an indirect interest, did not meet the statutory requirements for intervention. View "Jennings Plant Services, LLC v. Ellerbrock-Norris Agency" on Justia Law

The plaintiffs, Saint James Apartment Partners, LLC, Central States Development, LLC, and John C. Foley, filed a civil action against Universal Surety Company, alleging that a notary public covered under Universal's bond engaged in negligent conduct. The plaintiffs did not include the notary public as a party to the action. Universal filed a motion to dismiss, arguing that the plaintiffs failed to join the notary public as a necessary party and that the complaint failed to state a claim upon which relief could be granted. The district court granted the motion to dismiss without prejudice, concluding that Nebraska law required the plaintiffs to join the notary public in the action.The Nebraska Supreme Court reversed the district court's decision. The court held that an involuntary dismissal for a lack of a necessary party, which leaves nothing remaining for the trial court to do, is a final order over which an appellate court may exercise jurisdiction. The court also held that Nebraska law does not require a person suing under the official bond of a notary public to join the notary as a necessary party to the action. The case was remanded for further proceedings consistent with the court's opinion. View "Saint James Apt. Partners v. Univeral Surety Co." on Justia Law

The Supreme Court affirmed the order of the district court granting summary judgment after determining that Plaintiff's claim for underinsured motorist benefits against American Family Insurance Company was time-barred, holding that Plaintiff's action was untimely.Plaintiff sought underinsured motorist benefits against American Family Insurance Policy, but the district court determined that the action was barred by a two-year limitation provision in the insurance policy. The district court granted summary judgment in favor of American Family. The Supreme Court affirmed, holding that the district court correctly found that Plaintiff's action was untimely. View "Rose v. American Family Insurance Co." on Justia Law

The Supreme Court affirmed the judgment of the district court granting summary judgment in favor of Plaintiffs' insurer and its agent in this negligence action brought by Plaintiffs seeking to recover damages after their home was destroyed in a fire, holding that the district court did not err.Insureds purchased a homeowners insurance policy from Insurer through a licensed insurance producer (Agent). Insureds later filed a complaint alleging that Agent negligently advised them on the estimated replacement value of their home and negligently misrepresented the adequacy of their policy limits in the event of a total loss. Insureds also alleged that Insurer was liable under a theory of respondent superior. The district court granted summary judgment for Insurer and Agent. The Supreme Court affirmed, holding that Insureds' claims failed as a matter of law and that the district court did not err in granting summary judgment. View "Callahan v. Brant" on Justia Law

The Supreme Court affirmed the order of the district court finding that this action brought by Plaintiff against Janice German and Dawes County Abstract & Title, Inc. (collectively, German) arising from title abstracting and issuing commitments and title insurance services German performed for a series of transactions, holding that the district court did not err.The district court concluded (1) the amended complaint stated a single cause of action for professional negligence against German as an abstracter with several theories of recovery; and (2) Neb. Rev. Stat. 25-2222, the two-year statute of limitations for professional negligence, applied, thus time-barring the complaint. The Supreme Court affirmed, holding (1) the district court correctly concluded that Plaintiff was performing abstracter services during the time period in issue; and (2) abstracters of title provide "professional services" within the meaning of section 25-222. View "Mai v. German" on Justia Law

The Supreme Court affirmed in part and reversed in part the decision of the court of appeals reversing the judgment of the district court dismissing Millard Gutter Company's suit against Farm Bureau Property & Casualty Insurance Company without prejudice, holding that the district court correctly dismissed the first-party bad faith claims for lack of standing.After a storm, Millard Gutter obtained assignments of the right to insurance proceeds due under policies of Shelter. Thereafter, Millard filed suit against Shelter in its own name, as assignee, alleging breach of contract and first-party bad faith in failing to settle the claims. The district court granted Shelter's motion to dismiss, concluding that the complaint did not contain sufficient factual allegations to establish standing to assert first-party bad faith claims. The court of appeals reversed in part, concluding that Millard Gutter had stated a plausible claim for first-party bad faith. The Supreme Court reversed in part, holding that Millard Gutter lacked standing to prosecute the policyholders' tort actions for first-party bad faith against Shelter. View "Millard Gutter Co. v. Farm Bureau Property & Casualty Insurance Co." on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing this action brought by Millard Gutter Company against Shelter Mutual Insurance Company seeking to recover damages for breach of insurance contracts and for first-party bad faith, holding that the district court did not err in concluding that Millard Gutter did not have standing to assert first-party bad faith claims against Shelter.After a storm, Millard Gutter obtained assignments from various policyholders of Shelter. Thereafter, Millard filed suit against Shelter in its own name, as assignee, alleging breach of contract and first-party bad faith in failing to settle the claims. The district court granted Shelter's motion to dismiss, concluding that the complaint did not contain sufficient factual allegations to establish standing to assert first-party bad faith claims. The Supreme Court affirmed, holding that Millard Gutter lacked standing to prosecute the policyholders' tort actions for first-party bad faith against Shelter. View "Millard Gutter Co. v. Shelter Mutual Insurance Co." on Justia Law

The Supreme Court reversed the order of the district court dismissing the complaint brought by Great Plains Livestock Consulting, Inc. and its president (collectively, Great Plains) against Midwest Insurance Exchange, Inc. (Midwest), as well as UNICO Group, Inc. and one of its agents (collectively, UNICO), holding that Great Plains' action was ripe.Great Plains alleged that Midwest and UNICO negligently failed to transfer or procure an errors and omissions insurance policy, which would have covered the costs of defense for two lawsuits filed in another state against Great Plains. The district court dismissed the complaint as unripe because Defendants' liability and Great Plains' damages were currently unknown and because Great Plains may never be found liable in the out-of-state litigation. The Supreme Court reversed and remanded the case for further proceedings, holding that Great Plains' action was ripe. View "Great Plains Livestock Consulting, Inc. v. Midwest Insurance Exchange, Inc." on Justia Law

In this insurance dispute, the Supreme Court affirmed in part, vacated in part and reversed in part the decision of the district court granting summary judgment in favor of North Star Mutual Insurance Company and against Old Mill Bulk Foods, holding that the district court erred by not granting summary judgment in favor of Old Mill.In July 2018 a fire destroyed the premises of a deli-grocery store. Old Mill elected to renovate another building in which to relocate is business and sought $159,879 under the "extra expense" provision of its insurance policy through North Star. North Star denied coverage and then filed this declaratory judgment to determine the parties' rights and obligations under the policy. The district court denied the extra expenses. The Supreme Court held that the district court (1) erred by not granting summary judgment in favor of Old Mill as to the claimed extra expenses; and (2) properly granted summary judgment with respect to the claim for a walk-in cooler. View "North Star Mutual Insurance Co. v. Miller" on Justia Law

The Supreme Court reversed the judgment of the district court reversing the judgment of the county court dismissing the complaint brought by North Star Mutual Insurance Company without prejudice, holding that North Star violated the rule against claim splitting when it filed a subrogation action in its own name, without joining its insured.Julie Blazer, who was insured with North Star, was driving her vehicle when she was struck by a pickup truck driven by Travis Stewart. After paying Balzer insurance benefits as a result of the accident North Star filed suit against Stewart. North Star brought the negligence action in its own name as a subrogee of Blazer but did not join Blazer as a party. The county court dismissed the complaint without prejudice for lack of standing. The district court reversed. The Supreme Court reversed, holding that the allegations of the complaint were insufficient to demonstrate that North Star had standing to commence this action in its own name. View "North Star Mutual Insurance Co. v. Stewart" on Justia Law