West Side Salvage, Inc. v. RSUI Indemnity Co.

Dist. Ct. did not err in granting defendant-insurance company’s motion for summary judgment in plaintiff-insured’s action alleging that defendant breached its duty to settle underlying property-damage claim that arose out of grain bin explosion, where: (1) at time of explosion insured had been hired to work on grain bin to reduce temperature in bin that posed risk of fire and explosion; and (2) defendant’s failure to settle claim resulted in jury finding that insured was liable for property damage to bin. Relevant damage-to property clause in policy precluded coverage for damage to property on which insured was performing work, and said clause was designed to prevent insured from collecting insurance proceeds for its own faulty workmanship arising out of risks associated with its business. As such, defendant did not breach any duty to settle underlying property-damage claim since claim was not covered because of damage-to-property exclusion where: (1) insured performed its work incorrectly by failing to reduce grain temperature in timely manner; and (2) damage that plaintiff caused was one of normal risks associated with its business of remedying hot grain bins. Fact that plaintiff was only working on grain (as opposed to bin) at time of explosion did not require different result.