Summary Judgment Affirmed on Appeal in $1.25-Million Negligent Procurement Case

July 25, 2023

Corey L. Kraushaar successfully briefed and argued an appeal before the U.S. Court of Appeals for the 8th Circuit. The 8th Circuit affirmed the U.S. District Court’s summary judgment ruling in favor of the defendant insurance agent (client) on plaintiff’s $1.25 million negligent procurement of insurance claim related to a fire loss. The 8th Circuit affirmed the findings that 1) the plaintiff could not have been included as a mortgagee on the policy because it lacked that status and coverage would have been voided for material misrepresentation, and, 2) had the plaintiff been included as an additional insured under the policy then the fire protective safeguard endorsement barred recovery. The 8th Circuit further found that plaintiff could not establish that defendant caused plaintiff’s damages under Missouri law. A published opinion from the 8th Circuit is forthcoming.