Barnes v. American Standard Ins. Co. of Wis., 297 Neb. 331

In June 2013 Jimmy R. Barnes, Jr. purchased three auto policies from American Standard, including a motorcycle policy with underinsured motorist coverage.
American Standard prepared cancellation notices for all three policies on September 18, 2013, asserting nonpayment; notices stated cancellation effective October 1 unless premium paid.
American Standard produced Form 3877 (Certificate of Mailing) showing three pieces mailed to Barnes, but the “Certified” box was not checked and Barnes’ street address was omitted; Barnes swore he never received the notices.
Barnes was injured in a motorcycle accident on October 10, 2013, recovered $100,000 from the tortfeasor’s insurer, then claimed underinsured benefits from American Standard which denied coverage as the policy was allegedly canceled.
On cross-motions for partial summary judgment the district court found American Standard had complied with Neb. Rev. Stat. § 44-516 by sending certified mail, granted insurer’s motion, dismissed Barnes’ complaint, and Barnes appealed.
The Nebraska Supreme Court reversed, holding the insurer failed to establish as a matter of law that the notice was mailed by certified mail and that factual issues precluded summary judgment.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether insurer mailed cancellation by certified/registered mail as § 44-516 requires	Barnes: no certified mailing; Form 3877 defective and he never received notice	American Standard: Form 3877, mailing logs, employee affidavits and mailing habit evidence prove certified mailing	Held: Genuine factual dispute; insurer did not prove certified mailing as a matter of law; summary judgment improper
Who bears burden to prove compliance with statutory mailing requirement	Barnes: insurer must prove compliance before loss	American Standard: relied on mailing records and habit evidence to satisfy burden	Held: Burden is on insurer to establish effective cancellation; insurer failed to carry it on summary judgment
Evidentiary weight of Form 3877 (Certificate of Mailing) when incomplete	Barnes: incomplete form (no certified box, missing street) is insufficient	American Standard: Form 3877 plus habit evidence and tracking numbers suffice	Held: Incomplete Form 3877 alone insufficient; tracking numbers ≠ proof of certified mail; totality of evidence creates factual issue for trier of fact
Appropriateness of summary judgment given conflicting inferences	Barnes: inferences must be drawn for nonmoving party; jury should decide	American Standard: submitted enough evidence to entitle it to judgment	Held: Court must view evidence in nonmovant’s favor; district court erred by resolving factual disputes for moving party; reverse and remand

Daniels v. Allstate Indem. Co., 261 Neb. 671 (insurer bears burden to prove effective cancellation)
Houska v. City of Wahoo, 235 Neb. 635 (customary mailing practice can create inference of proper mailing but fact issue remains for trier of fact)
Coleman v. C.I.R., 94 T.C. 82 (defective Form 3877 does not automatically supply presumption of certified mailing; context of trial/post-trial matters)
United States v. Ahrens, 530 F.2d 781 (properly completed postal certificate supports presumption of mailing)
Ragan v. Columbia Mut. Ins. Co., 183 Ill. 2d 342 (statute requiring proof on recognized USPS form limits insurer to that low threshold; incomplete alternative proof may undermine legislative balance)
Horton v. Washington Cty. Tax Claim Bureau, 623 Pa. 113 (Certificate of Mailing furnishes evidence of mailing only; service-level terms defined in USPS/Domestic Mail Manual)
Midland Properties v. Wells Fargo, 296 Neb. 407 (summary judgment standards)
Brock v. Dunning, 288 Neb. 909 (party moving for summary judgment bears burden to show no genuine issue of material fact)
Sanders v. Mittlieder, 195 Neb. 232 (requirement of certified/registered mail facilitates proof of receipt)