Cleaver-Brooks Inc. v. Twin City Fire Ins. Co.

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An employee at a boiler manufacturing plant sustained permanent hearing loss as a result of his employment. Between the time he was injured and the time he filed his workers’ compensation claim, the plant changed ownership. Twin City Fire Insurance Company insured the plant for the previous owner, and American Insurance Company insured the new owner. Counsel representing American mistakenly believed that American had insured the plant during the time of the injury, and Twin City was not given notice of the claim until after entry of an award. The new owner of the plant filed a declaratory judgment action against the previous owner and both insurers to determine who was liable for payment of the award. The district court determined that Twin City was liable for the employee’s workers’ compensation award. The Supreme Court affirmed, holding that the district court did not err in finding that Twin City was liable for the award, in rejecting Twin City’s equitable defenses, and in dismissing Twin City’s counterclaims. View "Cleaver-Brooks Inc. v. Twin City Fire Ins. Co." on Justia Law