Terhaar, Archibald, Pfefferle & Griebel, LLP

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Remodeling Dimensions, Inc. v. Integrity Mutual Ins. Co., No. A10-1992 (Minn. Ct. App. filed June 21, 2011)

The Minnesota Court of Appeals ruled that a commercial general liability insurance policy does not cover an insured contractor’s liability to homeowners for failure to inform the homeowners of pre-existing damage to their home. The court justified this ruling by stating that the liability was not caused by an “occurrence” and was not caused by “property damage,” as those terms are used in the insurance policy.

Western National Insurance Company v. Thompson, 797 N.W.2d 201 (Minn. 2011)

The Minnesota Supreme Court ruled that no-fault insurers may, pursuant to Minn. Stat. § 65B.56, sudiv. 1 (2010), require an insured-claimant to attend an examination under oath (“EUO”) if the EUO is reasonably necessary for the insurer to obtain information about the claimant’s injuries. The Court went on to rule that in a no-fault insurance arbitration under Minn. Stat. § 65B.525 (2010), the arbitrator may make binding factual determinations as to the reasonableness of a request for or refusal to submit to an EUO but that such decisions are subject to de novo review by the courts.

W3i Mobile, LLC v. Westchester Fire Ins. Co., 632 F.3d 432 (Ct. App. 8th Cir., Feb. 15, 2011)

Provider of mobile content to cellular telephone users sued its insurer under business and management indemnity policy alleging breach of contract and seeking declaration that insurer had duty to defend and indemnify it for expenses associated with two class actions brought by users of its mobile contact. The 8th Circuit Court of Appeals held that the policy’s products exclusion applied to preclude coverage for the class action claims.

W3i’s insurance policy with Westchester excluded coverage “for Loss on account of any Claim . . . alleging, based upon, arising out of, attributable to, directly or indirectly resulting from, in consequence of, or in any way involving . . . any goods or products manufactured, produced, processed, packaged, sold, marketed, distributed, advertised or developed by [W3i] (emphasis omitted). The court held that the products exclusion’s plain language precluded coverage. The exclusion operated against claims “arising out of, . . . directly or indirectly resulting from, . . . or in any way involving . . . products . . . produced . . . sold, marketed, distributed, . . . or developed by “W3i]” (emphasis added). The class actions alleged that customers were billed for mobile content, which the court held was indisputably W3i’s “product” regardless of whether the bills were erroneous or unauthorized.
The court rejected W3i’s characterization of the underlying class action claims as “billing disputes” unaffected by the policy’s products exclusion. The court held that accepting W3i’s characterization “would require [the court] to ignore both the exclusion’s plain and unambiguous language and the underlying claims’ factual allegations. Nothing in the language of the products exclusion limits its operation to claims which have W3i’s products at the core of its claims. Interpreting the exclusion so narrowly would require [the court] to ignore the exclusion’s ‘in any way involving’ clause, contrary to Minnesota’s rue of contract interpretation.”

David Quade, et al. v. Secura Ins., 792 N.W.2d 478 (Minn. Ct. App. 2011)

Holding that it is within the district court’s jurisdiction to determine the meaning and interpretation of an insurance contract and the application of coverage and exclusion clauses when an insurer claims that building damage is entirely attributable to conditions that fall within a policy exclusion, and are therefore not covered.

QBE Ins. Corp. v. Twin Homes of French Ridge Homeowners Assoc., 778 N.W.2d 393 (Minn. Ct. App. 2010)

Insurance appraisal panel allowed to determine amount expended to replace damaged property.

Holding that an insurance appraisal panel does not exceed its authority by applying an insurance policy’s replacement loss formula to measure the value of damage, here roof hail damage, by determining the amount actually and necessarily expended to repair or replace the damaged property.

In re Individual 35W Bridge Litigation, 787 N.W.2d 643 (Minn. Ct. App. 2010)

Minnesota’s statute of repose for actions under the improvement to real property statute of limitations applies retroactively.

Holding that an amendment to the statute of repose for actions arising out of defective and unsafe conditions of improvement to real property, Minn. Stat. § 541.051, applied retroactively, that retroactive application did not violate successor’s due process rights, and that compensation statutes did not substantially impair contract between firm and State.

Swanson v. Brewster, 784 N.W.2d 264 (Minn. 2010)

Holding that the word “payment” in Minnesota’s collateral source statute, Minn. Stat. § 548.251, includes discounts negotiated by a private health insurer with the plaintiff’s health care provider.

Minnesota’s collateral source statute was enacted to prevent double recoveries by plaintiffs. The statute essentially provides that a plaintiff cannot recover money damages from the defendant if the plaintiff has already received compensation from third parties or entities.

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