Selective Insurance Company of South Carolina v. Sela, No. 20-2029 (8th Cir. 2021)
Annotate this CaseThe Eighth Circuit affirmed the district court's finding that Selective denied insurance coverage in bad faith and the district court's award of taxable costs and prejudgment interest. In this case, Selective sought a declaration of no coverage for the insured's hailstorm-damaged property, alleging fraud by misrepresentation and breach of contract. The insured counterclaimed and later added a claim for bad faith denial of benefits under Minn. Stat. 604.18, which would entitle him to taxable costs. A jury found in favor of the insured and a panel of appraisers assessed damages. The court concluded that the district court did not err in allowing the insured's section 604.18 claim to proceed; there was no error in awarding taxable costs under section 604.18, subdivision 2(a), based on the district court's determination that no reasonable insurer would have relied on any of Selective's proposed bases to deny defendant's hail claim for fraud; and there was no error in the district court's award of prejudgment interest.
Court Description: [Kobes, Author, with Shepherd and Erickson, Circuit Judges] Civil case - Insurance. The district court did not, under the circumstances presented, err in permitting defendant's claim for taxable costs under Minn. Stat. Sec. 604.18 to proceed; nor did it err in awarding taxable costs under Sec. 604.18, subdivision 2(a), based on its determination that no reasonable insurer would have relied on any of Selective's proposed bases to deny defendant's hail claim for fraud; award of prejudgment interest affirmed.
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