KAAPA Ethanol, LLC v. Affiliated FM Ins. Co., No. 10-1929 (8th Cir. 2011)Annotate this Case
KAAPA managed a facility that distilled corn into ethanol. KAAPA commenced a diversity action after Affiliated denied KAAPA's claim to recover the cost of extensive repairs and business interruption losses. A jury found that some losses were caused by "collapse" of storage tanks, awarded KAAPA property damage, but denied its claim for business interruption losses. Both sides appealed raising various issues. Applying Nebraska law, the court affirmed the district court's denial of Affiliated's motion for judgment as a matter of law. The court held, however, that the district court committed reversible error in instructing the jury on the meaning of the term "collapse" and remanded for a new trial. The court did not decide the loss-mitigation and other post-trial issues raised in KAAPA's cross-appeal.