Insurance Claims

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WI Court of Appeals – District III

Case Name: J&J Enterprises of De Pere, LLP v. Cincinnati Insurance Company

Case No.: 2022AP001120

Officials: Stark, P.J., Hruz and Gill, JJ.

Focus: Insurance Claims

This appeal arises from an insurance coverage dispute following a 2019 fire that destroyed several of J&J’s buildings. J&J had an insurance policy with Cincinnati that was issued and delivered through an independent agent, Ansay & Associates, LLC (“Ansay”).

The policy provided replacement cost coverage up to the policy limit of $2,086,000. At the time of the fire, however, Cincinnati was aware that the replacement cost for J&J’s buildings was between $3.1 and 3.4 million. J&J Enterprises of De Pere, LLP (“J&J”) appeals a circuit court order granting summary judgment in favor of Cincinnati Insurance Company (“Cincinnati”) on J&J’s claims for negligence and breach of contract. Specifically, J&J argues that the court erred in concluding that Cincinnati was not liable for failing to advise J&J that it was underinsured. Cincinnati cross-appeals the court’s denial of costs under WIS. STAT. § 814.03 (2021-22).1 The court rejects J&J’s arguments in its appeal and agrees with Cincinnati that an award of costs was mandatory. The appeals court therefore affirms the court’s order granting summary judgment to Cincinnati and remand this matter for the limited purpose of awarding costs to Cincinnati.

Affirmed in part, remanded in part, and reversed.

Decided 09/06/23

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