Category archive: Iowa

Eighth Circuit: Fact Issues Require Reversal of Summary Judgment In Iowa Crop Insurance Hail Loss

Summary: Bruhn Farms Joint Venture (“Bruhn”) suffered significant hail damage to crops. Bruhn notified the insurer of the hail damage. After a month of no action, Bruhn requested and received approval to harvest the crops. By the time insurer sent adjusters to the farm, additional inclement weather had occurred. The adjusters, after spending minimal amount…

Iowa Rule: First-Party Bad Faith Claim Barred Because Not Brought With Breach of Contract Suit Against Insurer

Summary: The insured made significant improvements to its building, thereby increasing building’s value.  Insurer made initial payments to insured under building, personal property and business income coverages. After substantial negotiations between insurer and insured’s counsel, insured filed breach of contract action against insurer.  Insured won at trial, and insurer paid the judgment and interest and…

Non-compliance with Iowa’s Workers’ Compensation Rules Defeats Bad Faith Workers’ Compensation Claim

Summary: Spencer, a truck driver employed by Annett Holdings, was injured on the job. He filed suit against Annett making several bad faith claims, including failure to pay medical bills, delaying necessary medical care, and delaying healing period benefits. The district court dismissed the action for failing to present a submissible case, which the 8th…

This Policy’s Ambiguous, So Let’s Have a Trial. On Second Thought …

Summary: A severe flood struck Cedar Rapids, Iowa in 2008, damaging the insured’s manufacturing facility and impacting its business operations, leading to claims of property damages exceeding $35 million and business interruption losses exceeding $26 million. Two insurers equally shared responsibility for payment of claims under the same insurance policy. They paid only $20 million,…

One Reasonable Basis for Denying Coverage Defeats Bad Faith in Iowa

Summary: Pella Corporation, an Iowa company, was a defendant in two class action cases in Illinois. Those cases alleged that Pella’s windows were defectively designed and manufactured. Liberty Mutual filed a declaratory judgment action in Iowa federal court contending it owed no coverage. The District Court ruled that Liberty Mutual had a duty to reimburse…

Fire Insurer’s Full and Fair Investigation Defeats First Party Bad Faith Claim

Morse v. State Farm Fire & Cas. Co., 733 F.Supp.2d 1065 (S.D. Iowa 2010) The fire department concluded that the fire’s cause was electrical.  State Farm’s fire investigator, backed up by an engineer and a forensic lab, concluded that the fire was intentionally set.  Before a jury ruled who was right, the Iowa federal judge…

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