George K. Baum & Co. v. Twin City Fire Ins. Co., No. 12-3982 (8th Cir. 2014)
Annotate this CaseBaum filed suit against Twin City, its insurer, over a dispute regarding coverage of an IRS investigation. Reviewing the choice of law question in light of sections 188 and 187 of the Restatement (Second) of Conflict of Laws, the court predicted that the Missouri Supreme Court would apply New York law to this dispute; the court concluded that the policy provided coverage where Twin City's insurance agreement was ambiguous regarding any timely notice requirement applicable to later liabilities arising from a timely original claim; although the district court erred by applying Missouri law, the court affirmed the judgment of the district court; and the court affirmed the district court's declaration that a $3 million self-insured retention applied to the derivatives litigation because the litigation was sufficiently related to Baum's business underwriting and selling municipal bonds.
Court Description: Civil case - Insurance.Reviewing the choice of law question in light of section 188 and 193 of the Restatement for choice-of-law issues, it is likely the Missouri Supreme Court would determine that New York law applied to the parties' coverage dispute, and the district court erred in determining Missouri law would apply; however, plaintiff was entitled to judgment in the matter as the insurance policy is ambiguous regarding any timely notice requirement applicable to later liabilities arising from a timely original claim and the policy therefore provides coverage; district court correctly determined that a $3 million self-insured retention applied because the derivatives litigation at issue was sufficiently related to plaintiff's underwriting and selling municipal bonds.
The court issued a subsequent related opinion or order on July 25, 2014.
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