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Home / Opinions / Courts / 8th U.S. Circuit Court of Appeals / Insurance Law : Umbrella Policy – Auto Accident – Cooperation Clause

Insurance Law : Umbrella Policy – Auto Accident – Cooperation Clause

Where an insurer brought a declaratory judgment action to determine if an umbrella insurance policy provided coverage in an auto accident case, the insured family violated the policy’s cooperation clause by entering into a Miller-Shughart settlement after the insurer had already protected them from any personal liability in a Drake-Ryan settlement, and summary judgment for the insurer is affirmed because this violation of the cooperation clause was prejudicial since the admission of liability in the Miller-Shughart agreement robbed the insurer of liability defenses that could have been asserted in the underling action in state court.

Judgment is affirmed.

American Family Mutual Insurance Company v. Donaldson (MLW No. 69096/Case No. 15-1465 – 11 pages) (U.S. Court of Appeals, 8th Circuit, Bye, J.) Appealed from U.S. District Court, District of Minnesota, Magnuson, J. (Rene L’Esperance, Hortonville, Wisconsin, argued for appellant) (Paula Duggan Vraa, St Paul, argued for appellee; Jennifer Young appeared on the brief).

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