Cornhusker Casualty Company v. Farmers Mutual Insurance Company of Nebraska

Summary

The Supreme Court of Nebraska held that an exclusion for damages resulting from the ownership, maintenance, or use of vehicles over 30 years old applied to the underlying injury claim. Because Cornhusker Casualty’s policy did not provide coverage, it had no duty to defend, while Farmers Mutual was responsible for the judgment payment and defense costs. The court reversed and remanded with directions to enter judgment for Cornhusker and dismiss Farmers’ counterclaim.

Holdings

1. The exclusion for damages resulting from the ownership, maintenance, or use of vehicles over 30 years old applied to Haag's claims against the Estate.
2. Because Haag's claim was outside the coverage of the Cornhusker garage policy, Cornhusker had no duty to defend the Estate.
3. Farmers was liable to Cornhusker for the $166,741.71 Cornhusker paid toward the judgment and the $98,245.65 Cornhusker spent defending the Estate, and Farmers' counterclaim had to be dismissed.

Questions Presented

1. Whether the Cornhusker policy exclusion for damages resulting from the ownership, maintenance, or use of vehicles over 30 years old applied to Haag's claims.
2. Whether Farmers was responsible for the portion of the judgment paid by Cornhusker and for Cornhusker's defense costs.
3. Whether Cornhusker's lack of coverage meant that Farmers' counterclaim for reimbursement had to be dismissed.

Disposition

reversed_and_remanded