Ken Johnson Properties, LLC v. Harleysville Worcester Insurance Company
0:12-cv-01582
| D. Minnesota | Sep 30, 2013Background
- Insurance policy dispute over May 2012 roof weight/pool damage to multi-unit building in Saint Paul, MN; Johnson Properties seeks coverage under Harleysville policy issued Aug 2011–Aug 2012; Water Endorsement capped at $25,000; additional Collapse coverage potentially provides full coverage for rain-weight collapse; Harleysville reserved rights and initially paid $25,000 under Water Endorsement; City inspection condemned Unit 202 and noted roof/sag and ceiling damage; Thatcher and Encompass reports support collapse caused by weight of rain; Johnson Properties sues for breach of contract, waiver/estoppel, and seeks appraisal under policy; court resolves on cross-motions for summary judgment in Johnson Properties’ favor on breach of contract and denies/decisively disposes of waiver/estoppel and appraisal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Water Endorsement covers the roof damage | Johnson Properties contends Water Endorsement provides coverage for roof water damage | Harleysville argues Water Endorsement limits or excludes coverage to $25,000 | Water Endorsement could provide coverage; not decisive for ruling on collapse. |
| Whether collapse coverage provides full recovery despite Water Endorsement | Johnson Properties asserts collapse coverage is available for weight-of-rain collapse | Harleysville contends no collapse due to standing roof | Collapse coverage is ambiguous but favors Johnson Properties; provides full coverage for the portion caused by weight of rain. |
| Whether anti-concurrent loss provision bars coverage under Water Endorsement or collapse | Johnson Properties argues two covered losses can both apply; no anti-concurrent bar | Harleysville argues anti-concurrent loss excludes cross-coverage | Anti-concurrent loss provision not triggered; two covered causes may both apply. |
| Whether Waiver/Estoppel claim survives | Johnson Properties argues Harleysville’s payment under Water Endorsement created waiver/estoppel | Harleysville maintained reservation of rights; no waiver/estoppel | Waiver claim is rejected; estoppel claim rejected. |
| Whether Appraisal declaratory judgment is ripe | Appraisal warranted if disputes remain unresolved | No ripe controversy; policy already provides appraisal process | Appraisal claim granted no; dismissed as not ripe. |
Key Cases Cited
- SCSC Corp. v. Allied Mut. Ins. Co., 536 N.W.2d 305 (Minn. 1995) (burden on insured; exclusions construed narrowly against insurer)
- Chubb & Son v. Great Cent. Ins. Co., 159 N.W.2d 268 (Minn. 1968) (efficient proximate cause doctrine; anti-concurrent clauses)
- Donarski v. Lardy, 88 N.W.2d 7 (Minn. 1958) (ambiguous policy provisions resolved in insured's favor)
- Noran Neurological Clinic v. Travelers Indem. Co., 229 F.3d 707 (8th Cir. 2000) (surface water exclusion guidance for backs up/overflows language)