IGA Legal Counsel Argues on Behalf of Independents before Minnesota Supreme Court
Jan 08, 2009
The Minnesota State Supreme Court this week heard oral arguments in the case Auto Owners Insurance Co., et al. v. Star Windshield Repair, Inc. Attorney Chuck Lloyd of Livgard & Lloyd (who also contracted as the legal counsel for IGA) is representing Star Windshield Repair in the case along with companies Auto Glass Express and Archer Auto Glass.The case is a consolidation of four cases, three of which involved arbitrations by the glass companies against Western National Insurance Company, Austin Mutual Insurance Company and State Farm involving short payments. In those three cases, the glass companies prevailed at arbitration and were given awards directing the insurers to pay the full amount of the glass companies’ invoices in two of the case and roughly 75% of the invoice in the third (which was more than double what the insurer had paid initially). The insurers subsequently went to court to vacate the arbitrations claiming that the assignments received by the glass companies were invalid given the non-assignment clauses in each of the applicable insurance policies.
The fourth case involved Star Windshield seeking to arbitrate a series of short payments against Auto Owners. Star had previously prevailed in three arbitrations against Auto Owners. In response to the latest arbitration filings, Auto Owners filed with the court a declaratory-judgment action to block the arbitrations and "seeking a declaration that the non-assignment clause in its insurance contract prevented the customers from assigning the payment to Star Windshield.”
All four cases ultimately went before the Minnesota Court of Appeals which ruled in two separate opinions that the "non-assignment" clauses in an insurance policy did in fact prevent the policyholders from assigning the insurance proceeds owed to the glass shops. Last April, the Minnesota Supreme Court granted the glass companies’ request that it review the decisions. After extensive briefing, the Supreme Court heard oral arguments in the case on January 6.
CLICK HERE for to view the Supreme Court oral arguments in the case.
Lloyd will be presenting the IGA 2009 Legal Update at the 2009 Independents’ Days Conference and Spring Auto Glass Show™ being held May 12-14 at the Sanibel Harbour Resort in Fort Myers, Fla.