Ass Kickin Ranch, LLC v. North Star Mutual Insurance Co.
2012 SD 73
| S.D. | 2012Background
- Ranch insured by North Star in 2009; policy covered unscheduled farm personal property from 11/14/2009 to 11/14/2010.
- Shop building burned on 3/31/2010 destroying building and contents, including unassembled wind-turbine parts.
- Unassembled wind turbines consisted of towers, generators, transmissions, blades, and controls; never assembled or installed.
- Ranch submitted a $100,000 claim; North Star denied due to exclusion for fences, windmills, windchargers, or their towers.
- Ranch sued for breach of contract and bad-faith denial; circuit court granted summary judgment for North Star; Ranch appeals on exclusion interpretation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether exclusion for fences, windmills, windchargers, or their towers excludes unassembled wind turbines | Ranch: unassembled parts are not windmills/windchargers; exclusion should not apply | North Star: exclusion covers windmills/windchargers and their towers, regardless of assembly status | Yes; exclusion applies to unassembled wind turbines under plain meaning |
Key Cases Cited
- St. Paul Fire & Marine Ins. Co. v. Schilling, 520 N.W.2d 884 (S.D. 1994) (determines contract interpretation and insurer burden when exclusions apply)
- Nat’l Sun Indus., Inc. v. S.D. Farm Bureau Ins. Co., 596 N.W.2d 45 (S.D. 1999) (ambiguity rule; liberal construction favors insured only if ambiguous)
- Gibson v. De Smet Ins. Co. of S.D., 552 N.W.2d 98 (S.D. 1996) (insurance contract interpretation is a question of law, reviewed de novo)
- Robertson v. Nationwide Mut. Insurance Co., 569 A.2d 565 (Conn. App. Ct. 1990) (disassembled vehicle deemed within policy exclusion for motor vehicle)
- Zephier v. Catholic Diocese of Sioux Falls, 752 N.W.2d 658 (S.D. 2008) (summary judgment standard and contract interpretation framework)