Farmers Insurance Exchange, Truck Insurance Exchange, Fire Insurance Exchange, Mid-Century Insurance Company, and Farmers New World Life Insurance Company v. Allen Schirado

Summary

The Supreme Court of North Dakota reviewed a summary judgment dismissing Farmers Insurance Exchange and related insurers’ claims against Allen Schirado and awarding Schirado contract-value payments on his counterclaim. The court held that genuine issues of material fact existed regarding whether Schirado’s conduct caused Farmers to lose policyholders and premiums, and that causation and damages could be established through circumstantial evidence. The court reversed the summary judgment and remanded for further proceedings.

Holdings

1. Direct evidence from individual policyholders was not required to establish causation; causation may be proven through circumstantial evidence or a combination of direct and circumstantial evidence.
2. Uncertainty regarding the amount of damages does not preclude recovery when the fact of substantial damages is reasonably certain; evidentiary imprecision as to amount is for the trier of fact.
3. Summary judgment awarding Schirado the balance of his Contract Value payments was improper because his entitlement was intertwined with Farmers' unresolved contract and tort claims and could be affected by their resolution at trial.

Questions Presented

1. Whether summary judgment was proper on Farmers' claims when circumstantial evidence could support an inference that Schirado's conduct caused Farmers to lose business and premiums.
2. Whether the evidence of damages was too speculative to permit Farmers to proceed to trial.
3. Whether summary judgment awarding Schirado the balance of his Contract Value payments was proper when his entitlement was intertwined with Farmers' contract and tort claims.

Disposition

reversed_and_remanded