Scentry Biologicals, Inc. v. Mid-Continent Cas. Co.
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Mid-Continent Casualty Company provided comprehensive general liability insurance to Scentry Biologicals, the manufacturer of NoMate, a pest control product designed to protect agricultural crops from destructive insects. Applewood Orchards purchased NoMate from Wilbur-Ellis (W-E), a distributor of NoMate, and used the product on its apple crop to protect against moths. After Applewood discovered significant moth damage, it filed a tort action against Scentry and W-E. Scentry and W-E requested that Mid-Continent defend them under Scentry’s policy. Mid-Continent agreed to defend Scentry, reserving its right to determine its coverage obligations later, but refused to defend W-E. Applewood settled with W-E, and a court ruled against Scentry and in favor of Applewood. Meanwhile, Scentry filed a declaratory judgment against against Mid-Continent seeking declaratory relief on coverage issues. W-E and Applewood intervened. The district court granted summary judgment for and awarded damages to Scentry, Applewood, and W-E. The Supreme Court affirmed, holding that the district court did not err in granting the summary judgment motions filed by Scentry, Applewood, and W-E.
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