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Heartland Co-Op
v.
Nationwide Agribusiness Insurance Company
Heartland Co-Op (Heartland) appealed the district court’s grant of summary judgment in favor of Nationwide Agribusiness Insurance Company on Heartland’s breach of contract action. The district court concluded that the terms of the insurance contract created a $3,000,000 limit for the lost earnings and extra expenses suffered across all Heartland business locations. Heartland argued the district court’s conclusion was erroneous because “any one loss” means the limit applies individually to the losses suffered at each location. The court of appeals found the policy language is not ambiguous and that the district court correctly interpreted and construed the terms of the insurance contract. Heartland seeks further review.
Applicant
Heartland Co-Op
Resister
Nationwide Agribusiness Insurance Company
Attorney for the Applicant
John F. Lorentzen
Attorney for the Resister
Sean M. O'Brien
Supreme Court
Oral Argument Schedule
15-15-5
Feb 19, 2025 9:00 AM
Briefs
Court of Appeals
Court of Appeals Opinion
Opinion Number:
Date Published:
Summary
Appeal from the Iowa District Court for Polk County, Jeffrey D. Bert, Judge. AFFIRMED. Heard by Schumacher, P.J., and Ahlers and Langholz, JJ. Opinion by Ahlers, J. Dissent by Langholz, J. (19 pages)
Heartland Co-op (Heartland) appeals the district court’s grant of summary judgment to Nationwide Agribusiness Insurance Company, arguing the insurance policy issued to Heartland allowed it to recover for separate losses at each location, subject to the per loss coverage limit in the policy. OPINION HOLDS: Under the terms of the policy, Heartland suffered only one loss, so we affirm. DISSENT ASSERTS: Interpreting the text of the policy as a whole, I would hold that a business-interruption loss is tied to physical loss or damage at a specific location. So when more than one location has physical losses, the business interruption at each of those locations is multiple losses too. And because the $3 million limit is per loss—not per occurrence or per peril or capped by the catastrophe limit that the parties chose not to set—Heartland can claim up to $3 million for each of the business interruption losses arising from each of the physical losses at Heartland’s locations. Even if the majority’s contrary interpretation is also reasonable, the policy is fairly susceptible to two interpretations, and this interpretation favoring the insured must thus be adopted.