Mark Welfl, a livestock hauler, owned the following property:
The tractor was insured for $47,000 and the Wilson trailer was insured for $45,000 by Northland Insurance Company.
In September of '94, Welfl ran off the road and severely damaged the tractor and the Wilson trailer. The Northland claims adjuster quickly determined that the tractor was a "total" and the maximum policy limits were offered in settlement. However, a nearly $30,000, 7 week repair estimate from a trailer dealer spurred Northland to look for salvage bids. Later, Northland authorized the repairs.
Welfl continued hauling livestock with his Merritt trailer until he sold it in March of '95, believing the Wilson trailer was ready. The Wilson trailer, due to a delay in getting repair parts, was not ready until May. The weeks of missed work forced Welfl to sell his tractor back to his Peterbilt Dealer, before it was repossessed.
Welfl sued Northland for breach of contract on the grounds that Northland did not adequately investigate the damages and replace the Wilson Trailer in a timely manner. The trial court found in favor of Welfl and awarded damages. A district court found that the evidence did not support the decision and the verdict was set aside. The appeals court for the district reviewed the appellate decision and agreed, finding that Northland's decision to repair the trailer was consistent with the insurance contract.
Mark S. Welfl, Appellant/Cross-Appellee, v. Northland Insurance Company, Appellee/Cross-Appellant
USCA 8th Cir. Nos. 98-3759/3760 Affirmed Filed October 7, 1999, http://www.findlaw.com/casecode/courts/index.html (21 February 2000)