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State High Court sides with deli in dispute with insurer

The Supreme Court of Nebraska on Friday largely overturned a lower court ruling that an insurer must pay extra expenses in connection with a company that moved to a renovated facility after a fire.

Old Mill Bulk Foods is a deli / grocery store that operated in a rented building in Valentine, Nebraska, according to the ruling of the Nebraska Supreme Court in North Star Mutual Insurance Co. v. Jerry Miller and David Miller, do business as Old Mill Bulk Foods.

in July 2018, a fire destroyed its premises and Old Mill decided to renovate another building to relocate its operations. It claimed $ 159,878, in addition to other compensation, from its insurance company, Cottonwood, Minnesota-based North Star Mutual Insurance Co., according to its insurance̵

7;s additional cost provision, according to the decision.

North Star denied coverage, and a district court ruled in favor of the insurer, in addition to $ 4,600 for a walk-in cooler. It also considered that Old Mill was entitled to only $ 5,000 of its request for $ 33,797 in legal fees.

The State Supreme Court ruled in a unanimous decision that the dealer was entitled to extra cost coverage according to its policy.

“We conclude that the policy is ambiguous and therefore interpret it in Old Mills’ favor. the improvements that were made in the replacement room, ”it said.

The court, which upheld the walk-in cooler award, remanded the lawyer’s fee issue back to the trial court in light of its additional cost holdings.

Lawyers in the case did not respond to a request for comment.

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