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Justia Daily Opinion Summaries

US Court of Appeals for the Eighth Circuit
May 13, 2020

Table of Contents

American Family Mutual Insurance Co. v. Lehenbauer Farms, Inc.

Insurance Law

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Legal Analysis and Commentary

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Linking COVID-19 Relief for State Governments to Abandonment of “Sanctuary” Policies? The Uncharted Territory of Conditional Spending

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Illinois Law dean Vikram David Amar and professor Jason Mazzone assess President Trump’s suggestion that federal aid to state and local governments might be conditioned on their willingness to abandon their “sanctuary” policies and assist the federal government in immigration enforcement. Although Amar and Mazzone expect those federal spending conditions not to be realized, they use the President’s comment to list and describe some unanswered fundamental constitutional questions in the conditional spending arena.

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US Court of Appeals for the Eighth Circuit Opinions

American Family Mutual Insurance Co. v. Lehenbauer Farms, Inc.

Dockets: 19-2050, 19-2171

Opinion Date: May 12, 2020

Judge: Raymond W. Gruender

Areas of Law: Insurance Law

The Eighth Circuit affirmed the district court's grant of summary judgment in favor of American Family in a declaratory judgment regarding American Family's duty to defend and indemnify Mid-American. American Family had issued a commercial general liability insurance policy (CGL) to Mid-America. The court held that American Family has no duty to defend or indemnify Mid-American, because Mid-American's alleged defective construction work in the underlying suit is not considered an "occurrence" in the policy. Rather, Lehenbauer's damages are all the normal, expected consequence of MidAmerican's allegedly shoddy work and were the foreseeable or expected result of that work as a matter of law. Therefore, the court held that Mid-American's work causing the damages at issue is not "an accident" within the meaning of the CGL under Missouri law. Because there was no "accident" in this case, there is no "occurrence" and no possibility of coverage.

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