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Lewis Holding Co., Inc. v. Forsberg Engerman Co.

Supreme Court of Wyoming

February 21, 2014

LEWIS HOLDING COMPANY, INC., a Wyoming Corporation, Appellant (Plaintiff),
v.
FORSBERG ENGERMAN COMPANY, a Colorado Corporation, NTA, Inc., an Indiana Corporation, and Lexington Insurance Company, Appellees (Defendants).

Page 823

Representing Appellant: James P. Castberg, Castberg Law Office, Sheridan, Wyoming.

Representing Appellee, Forsberg Engerman Company: Weston W. Reeves and Anna M. Reeves Olson, Park Street Law Office, Casper, Wyoming. Argument by Ms. Olson.

Representing Appellees, NTA, Inc. and Lexington Insurance Company: Jason A. Neville and David E. Shields, Williams, Porter, Day & Neville, P.C., Casper, Wyoming. Argument by Mr. Shields.

Before KITE, C.J., and HILL, VOIGT [*], BURKE, and DAVIS, JJ.

BURKE, Justice.

[¶ 1] In this insurance coverage dispute, the district court granted summary judgment in favor of defendants Lexington Insurance Company, NTA, Inc., and Forsberg Engerman Company, and against plaintiff Lewis Holding Company, Inc. Lewis Holding challenges that ruling on appeal. We will affirm.

ISSUES

[¶ 2] Lewis Holding presents two issues:

1. Did the trial court err in granting the defendants' motions for summary judgment on the issue of estoppel?
2. Did the trial court err in granting the defendants' motions for summary judgment

Page 824

on the issue of breach of the covenant of good faith and fair dealing?

FACTS

[¶ 3] Lewis Holding is a Wyoming corporation engaged in the trucking business. Lexington is an insurance company, and NTA provides insurance adjusting services to Lexington. Forsberg is the insurance agency that helped Lewis Holding purchase insurance from Lexington.

[¶ 4] In October, 2010, one of Lewis Holding's side-dump trailers was damaged while unloading. Details of the incident are unclear, but it is undisputed that the trailer partially turned over and its back wheels were lifted off the ground. Lewis Holding filed an insurance claim, which Lexington paid.

[¶ 5] In April, 2011, another of Lewis Holding's side-dump trailers was damaged. Again, details are unclear, but it is undisputed that this trailer did not turn over and its wheels never left the ground. As before, Lewis Holding filed an insurance claim. NTA's adjuster examined the trailer. Based on his report, NTA issued a reservation of rights letter on Lexington's behalf, indicating that the damage may not be covered by the policy because it was due to mechanical failure or wear and tear. After the trailer was inspected a second time, Lexington denied the insurance ...


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