By: Derek Hawkins//May 3, 2017//
WI Supreme Court
Case Name: Maya Elaine Smith v. Jeff Anderson v. 4th Dimension Design, Inc.
Case No.: 2017 WI 43
Focus: Third Party Plaintiff – Duty to Defend
The petition for review asked the court to decide: (1) whether a third-party complaint may state a claim for which an insurance company has a duty to defend when the third-party plaintiff was sued for misrepresentation by the first-party plaintiff; (2) whether a third-party defendant may supplement the third-party complaint with additional facts when the third party defendant seeks a defense from its insurance company; and (3) whether summary judgment denying a claim for defense conclusively concludes the duty to defend question, notwithstanding subsequent developments in the lawsuit.
The circuit court granted summary judgment to West Bend Mutual Insurance Company.2 The circuit court concluded that there was no initial grant of coverage and also, if there were an initial grant of coverage, the policy exclusions prevented coverage for the claims for which R&B Construction sought defense. Therefore, West Bend Mutual had no duty to defend. The circuit court dismissed West Bend Mutual from the lawsuit and R&B appealed.
Petition Dismissed
Concur: Roggensack
Dissent: Abrahamson, Bradley