Justia Nebraska Supreme Court Opinion Summaries

A New Mexico insurance company initiated a lawsuit in Nebraska against two insurance companies, asserting claims for contribution and indemnity. One defendant, a New York insurance company, moved to dismiss for lack of personal jurisdiction, while the other defendant, a surplus insurance company, challenged a default judgment and sought to file a responsive pleading. The district court in Douglas County issued separate orders: it dismissed the New York insurer with prejudice and set aside the default judgment against the other defendant, allowing additional proceedings.After the dismissal order concerning the New York insurer, the plaintiff appealed to the Nebraska Court of Appeals, which summarily dismissed the appeal for lack of jurisdiction. The case returned to the district court, where the plaintiff voluntarily dismissed its claims against the remaining defendant without prejudice. This second dismissal order did not reference the prior dismissal of the New York insurer. The plaintiff then filed another appeal, again challenging the earlier dismissal order. The Court of Appeals dismissed this second appeal for lack of appellate jurisdiction, citing the absence of a single judgment resolving all claims against all parties as required by Nebraska statutes and referencing the Nebraska Supreme Court’s decision in Elbert v. Keating, O’Gara. The plaintiff petitioned for further review.The Nebraska Supreme Court reviewed the case and held that, because the district court had not entered a single written judgment adjudicating all claims and all parties, nor certified any order as final under the applicable statute, there was no final, appealable order. Therefore, the Supreme Court determined it lacked appellate jurisdiction and affirmed the dismissal of the appeal by the Court of Appeals. The court emphasized that jurisdiction cannot be created by voluntary dismissal without prejudice of unresolved claims or parties in the absence of a final judgment. View "Continental Indem. Co. v. Starr Indem. & Liab. Co." on Justia Law

D S Avionics Unlimited LLC owned a 1964 Piper PA-30 aircraft, which was insured under a policy issued by U.S. Specialty Insurance Company for the period between June 27, 2014, and June 27, 2015. In November 2014, DSA delivered the aircraft to a mechanic for maintenance at an Omaha airport. After a dispute between the mechanic and the airport owner, the mechanic was locked out of the hangar, and the aircraft was moved outside. When DSA attempted to retrieve the aircraft, a truck blocked its removal, and the airport owner refused to move it until storage fees were paid. The aircraft subsequently disappeared from view, and the airport owner informed authorities and the insurer that he was holding the aircraft pending payment. DSA reported the aircraft stolen and submitted a claim to USSIC, which was denied.USSIC filed suit in the District Court for Douglas County, Nebraska, seeking a declaration of noncoverage. DSA counterclaimed for breach of contract and bad faith. Both parties moved for summary judgment. The district court ruled in favor of USSIC, finding that DSA’s claim was not covered because there was no “accident” under the policy and that the Conversion Exclusion applied. The court also found that DSA failed to prove damages and that USSIC had an arguable basis for denial. DSA appealed, and the matter was moved to the Nebraska Supreme Court’s docket.The Nebraska Supreme Court held that DSA’s claim was within the policy’s coverage for “direct physical loss” caused by an “accident,” as defined by the policy. The court found that the airport owner’s actions constituted an “accident” from DSA’s perspective and that the Conversion Exclusion did not apply, as conceded by USSIC. The Supreme Court reversed the district court’s order and remanded for further proceedings regarding USSIC’s alleged bad faith and any damages due to DSA. View "U.S. Specialty Ins. Co. v. D S Avionics" on Justia Law

Jennings Plant Services, LLC, and its members, Spencer and Tarin Jennings, filed a lawsuit against Ellerbrock-Norris Agency, Inc., and Elliot Bassett, alleging that Ellerbrock-Norris failed to provide competent insurance advice. Specifically, Jennings claimed that Ellerbrock-Norris advised them not to add a company-owned vehicle, a Ford F-150, to their commercial insurance policies, which led to a lack of coverage when the vehicle was involved in a fatal collision. This resulted in a significant judgment against Jennings in a federal wrongful death case brought by Kacey Kimbrough, the special administrator of the estate of Shawn Thomas Kimbrough.In the U.S. District Court for the District of Nebraska, Kimbrough obtained a judgment of $5,436,266.87 against Jennings Plant Services. As part of a partial settlement, Jennings assigned Kimbrough a right to 85% of any proceeds from their state lawsuit against Ellerbrock-Norris. Kimbrough then sought to intervene in the state lawsuit under Neb. Rev. Stat. § 25-328, claiming an interest in the litigation due to her assigned right to a portion of the proceeds.The District Court for Washington County denied Kimbrough's motion to intervene, finding that she had no direct cause of action against either Jennings or Ellerbrock-Norris and no legal interest in the subject matter of the underlying litigation. The court determined that Kimbrough's interest was indirect and insufficient to warrant intervention under § 25-328.The Nebraska Supreme Court affirmed the district court's decision, holding that Kimbrough's alleged interest in the proceeds of the lawsuit was too attenuated to constitute a direct and legal interest in the litigation. The court concluded that Kimbrough, as a mere creditor with an indirect interest, did not meet the statutory requirements for intervention. View "Jennings Plant Services, LLC v. Ellerbrock-Norris Agency" on Justia Law

The plaintiffs, Saint James Apartment Partners, LLC, Central States Development, LLC, and John C. Foley, filed a civil action against Universal Surety Company, alleging that a notary public covered under Universal's bond engaged in negligent conduct. The plaintiffs did not include the notary public as a party to the action. Universal filed a motion to dismiss, arguing that the plaintiffs failed to join the notary public as a necessary party and that the complaint failed to state a claim upon which relief could be granted. The district court granted the motion to dismiss without prejudice, concluding that Nebraska law required the plaintiffs to join the notary public in the action.The Nebraska Supreme Court reversed the district court's decision. The court held that an involuntary dismissal for a lack of a necessary party, which leaves nothing remaining for the trial court to do, is a final order over which an appellate court may exercise jurisdiction. The court also held that Nebraska law does not require a person suing under the official bond of a notary public to join the notary as a necessary party to the action. The case was remanded for further proceedings consistent with the court's opinion. View "Saint James Apt. Partners v. Univeral Surety Co." on Justia Law

The Supreme Court affirmed the order of the district court granting summary judgment after determining that Plaintiff's claim for underinsured motorist benefits against American Family Insurance Company was time-barred, holding that Plaintiff's action was untimely.Plaintiff sought underinsured motorist benefits against American Family Insurance Policy, but the district court determined that the action was barred by a two-year limitation provision in the insurance policy. The district court granted summary judgment in favor of American Family. The Supreme Court affirmed, holding that the district court correctly found that Plaintiff's action was untimely. View "Rose v. American Family Insurance Co." on Justia Law

The Supreme Court affirmed the judgment of the district court granting summary judgment in favor of Plaintiffs' insurer and its agent in this negligence action brought by Plaintiffs seeking to recover damages after their home was destroyed in a fire, holding that the district court did not err.Insureds purchased a homeowners insurance policy from Insurer through a licensed insurance producer (Agent). Insureds later filed a complaint alleging that Agent negligently advised them on the estimated replacement value of their home and negligently misrepresented the adequacy of their policy limits in the event of a total loss. Insureds also alleged that Insurer was liable under a theory of respondent superior. The district court granted summary judgment for Insurer and Agent. The Supreme Court affirmed, holding that Insureds' claims failed as a matter of law and that the district court did not err in granting summary judgment. View "Callahan v. Brant" on Justia Law

The Supreme Court affirmed the order of the district court finding that this action brought by Plaintiff against Janice German and Dawes County Abstract & Title, Inc. (collectively, German) arising from title abstracting and issuing commitments and title insurance services German performed for a series of transactions, holding that the district court did not err.The district court concluded (1) the amended complaint stated a single cause of action for professional negligence against German as an abstracter with several theories of recovery; and (2) Neb. Rev. Stat. 25-2222, the two-year statute of limitations for professional negligence, applied, thus time-barring the complaint. The Supreme Court affirmed, holding (1) the district court correctly concluded that Plaintiff was performing abstracter services during the time period in issue; and (2) abstracters of title provide "professional services" within the meaning of section 25-222. View "Mai v. German" on Justia Law

The Supreme Court affirmed in part and reversed in part the decision of the court of appeals reversing the judgment of the district court dismissing Millard Gutter Company's suit against Farm Bureau Property & Casualty Insurance Company without prejudice, holding that the district court correctly dismissed the first-party bad faith claims for lack of standing.After a storm, Millard Gutter obtained assignments of the right to insurance proceeds due under policies of Shelter. Thereafter, Millard filed suit against Shelter in its own name, as assignee, alleging breach of contract and first-party bad faith in failing to settle the claims. The district court granted Shelter's motion to dismiss, concluding that the complaint did not contain sufficient factual allegations to establish standing to assert first-party bad faith claims. The court of appeals reversed in part, concluding that Millard Gutter had stated a plausible claim for first-party bad faith. The Supreme Court reversed in part, holding that Millard Gutter lacked standing to prosecute the policyholders' tort actions for first-party bad faith against Shelter. View "Millard Gutter Co. v. Farm Bureau Property & Casualty Insurance Co." on Justia Law

The Supreme Court affirmed the judgment of the district court dismissing this action brought by Millard Gutter Company against Shelter Mutual Insurance Company seeking to recover damages for breach of insurance contracts and for first-party bad faith, holding that the district court did not err in concluding that Millard Gutter did not have standing to assert first-party bad faith claims against Shelter.After a storm, Millard Gutter obtained assignments from various policyholders of Shelter. Thereafter, Millard filed suit against Shelter in its own name, as assignee, alleging breach of contract and first-party bad faith in failing to settle the claims. The district court granted Shelter's motion to dismiss, concluding that the complaint did not contain sufficient factual allegations to establish standing to assert first-party bad faith claims. The Supreme Court affirmed, holding that Millard Gutter lacked standing to prosecute the policyholders' tort actions for first-party bad faith against Shelter. View "Millard Gutter Co. v. Shelter Mutual Insurance Co." on Justia Law

The Supreme Court reversed the order of the district court dismissing the complaint brought by Great Plains Livestock Consulting, Inc. and its president (collectively, Great Plains) against Midwest Insurance Exchange, Inc. (Midwest), as well as UNICO Group, Inc. and one of its agents (collectively, UNICO), holding that Great Plains' action was ripe.Great Plains alleged that Midwest and UNICO negligently failed to transfer or procure an errors and omissions insurance policy, which would have covered the costs of defense for two lawsuits filed in another state against Great Plains. The district court dismissed the complaint as unripe because Defendants' liability and Great Plains' damages were currently unknown and because Great Plains may never be found liable in the out-of-state litigation. The Supreme Court reversed and remanded the case for further proceedings, holding that Great Plains' action was ripe. View "Great Plains Livestock Consulting, Inc. v. Midwest Insurance Exchange, Inc." on Justia Law