Preview
73-CV-24-1669
Filed in District Court
State of Minnesota
3/5/2024 3:22 PM
STATE OF MINNESOTA DISTRICT COURT
COUNTY OF STEARNS SEVENTH JUDICIAL DISTRICT
Case Type: Breach of Contract
St. Cloud Timberland Estates Home Owners Court File No.:__________________
Association,
Plaintiff,
vs. COMPLAINT
Country Mutual Insurance Company,
Defendant.
Plaintiff St. Cloud Timberland Estates Home Owners Association (the “Plaintiff”), as
and for its Complaint against Defendant Country Mutual Insurance Company (“Defendant”),
states and alleges as follows:
PARTIES
1. Plaintiff is a domestic nonprofit corporation organized and existing under the
laws of the State of Minnesota with its registered office address located at 1436 36th Avenue
N, P.O. Box 5122, St. Cloud, Minnesota 56302.
2. Plaintiff is a common interest community consisting of multiple buildings
located in St. Cloud, Minnesota (the “Property”).
3. Upon information and belief, Defendant is a foreign insurance company
licensed and authorized to sell insurance and transact business in the State of Minnesota
with a principal place of business located at 1705 Towanda Avenue, P.O. Box 2222,
Bloomington, Illinois 61702-2100 and a registered service address at Corporation Services,
2345 Rice Street, Suite 230, Roseville, MN 55113.
73-CV-24-1669
Filed in District Court
State of Minnesota
3/5/2024 3:22 PM
4. Because the Property is in Stearns County, Minnesota, the above-named Court
has jurisdiction over this matter.
FACTS
5. At all times relevant hereto, Defendant insured the Property under a policy of
insurance (the “Policy”). The Policy provided insurance coverage for, among other things,
hail and windstorm damage.
6. On or about May 12, 2022, a storm damaged the Property (the “Loss”).
7. After the Loss occurred, Plaintiff notified Defendant and reported the Loss,
provided Defendant with access to the Property to investigate and adjust the Loss, fulfilled
all of its other duties and obligations under the Policy, and relied upon Defendant to honor
its contractual obligations to properly adjust and pay for the Loss.
8. On or about June 12, 2023, Country Mutual completed its investigation of the
loss and accepted coverage for the Loss.
9. The parties disagreed on the amount of loss.
10. On or about December 8, 2023, Plaintiff demanded an appraisal of the Loss
pursuant to the appraisal provision of the Policy.
11. On or about February 8, 2024, Plaintiff complied with Country Mutual’s
request for a Sworn Statement in Proof of Loss.
12. Plaintiff further complied with Country Mutual’s requests for information and
documents.
13. On or about February 14, 2024, Country Mutual unilaterally cancelled the
appraisal of the Loss.
14. To date, appraisal has not been completed.
2
73-CV-24-1669
Filed in District Court
State of Minnesota
3/5/2024 3:22 PM
COUNT I
BREACH OF CONTRACT
15. Plaintiff restates and realleges each of the foregoing paragraphs as though
fully set forth herein and further state and allege as follows.
16. The Policy is a contract between Plaintiff and Defendant.
17. Plaintiff has performed all conditions precedent necessary to obligate
Defendant to perform under the Policy, including paying premiums and cooperating with
Defendant’s investigation and adjustment of the Loss.
18. Defendant has breached the Policy by failing to fully and fairly adjust and pay
the Loss.
19. Defendant has breached the Policy by refusing to participate in an appraisal of
the loss.
20. As a direct result of Defendant’s breach of contract, Plaintiff has been damaged
in an amount in excess of $50,000, the specific amount to be determined at trial.
COUNT II
DECLARATORY JUDGMENT
21. Plaintiff restates and realleges each of the foregoing paragraphs as though
fully set forth herein and further states and alleges as follows.
22. Defendant has failed to adjust and pay the Loss in total, in contravention of the
express language of the subject Policy.
23. Defendant has failed to participate in an appraisal of the Loss even though
there is a dispute over the amount of loss.
3
73-CV-24-1669
Filed in District Court
State of Minnesota
3/5/2024 3:22 PM
24. There is a real justiciable controversy between the Plaintiff and the Defendant
over the extent to which the subject Policy provides indemnity and coverage for damages,
both direct and consequential, relating to the Loss.
25. The provisions of the subject Policy must be construed against Defendant.
26. Plaintiff is entitled to judicial declaration that the subject Policy includes
coverage for the damages arising out of the Loss, including but not limited to, the actual cash
value and the replacement cost value to repair or replace materials damaged by the May 12,
2022 storm with materials of like kind and quality for like use and all necessary repairs
required to meet the prevailing building code requirements.
27. Pursuant to the Policy, the appraisal clause of the Policy, appraisal is the
appropriate procedure to resolve the disputed amount of Loss.
28. All coverage issues that remain after the appraisal panel has issued an award
as to the disputed amount of loss shall be decided by the Court.
WHEREFORE, Plaintiff respectfully requests judgment of the Court against Defendant
for the following relief:
1. Judgment in favor of the Plaintiff and against Defendant for an amount in
excess of $50,000, the exact amount to be proven at trial;
2. An order compelling the Parties to address their remaining dispute through
appraisal;
3. An order staying this lawsuit pending the completion of the insurance
appraisal;
4. An award of attorney’s fees, costs, disbursements, and interest; and
5. For such other and further relief as this Court deems just and equitable.
4
73-CV-24-1669
Filed in District Court
State of Minnesota
3/5/2024 3:22 PM
SMITH JADIN JOHNSON, PLLC
Dated: February 21, 2024 /s/ Bradley K. Hammond
Bradley K. Hammond (#391611)
7900 Xerxes Avenue, Suite 2020
Bloomington, MN 55431
Telephone: (952) 388-0289
Facsimile: (612) 235-7927
ajadin@sjjlawfirm.com
bhammond@sjjlawfirm.com
Attorneys for Plaintiff
ACKNOWLEDGMENT
The undersigned hereby acknowledges that costs, disbursements, and reasonable
attorney and witness fees may be awarded pursuant to Minn. Stat. § 549.211, to the party
against whom the allegations in this pleading are asserted.
SMITH JADIN JOHNSON, PLLC
Dated: February 21, 2024 /s/ Bradley K. Hammond
Bradley K. Hammond (#391611)
5
Preview
73-CV-24-1669 Filed in District Court State of Minnesota 3/5/2024 3:22 PM STATE OF MINNESOTA DISTRICT COURT COUNTY OF STEARNS SEVENTH JUDICIAL DISTRICT Case Type: Breach of Contract St. Cloud Timberland Estates Home Owners Court File No.:__________________ Association, Plaintiff, vs. COMPLAINT Country Mutual Insurance Company, Defendant. Plaintiff St. Cloud Timberland Estates Home Owners Association (the “Plaintiff”), as and for its Complaint against Defendant Country Mutual Insurance Company (“Defendant”), states and alleges as follows: PARTIES 1. Plaintiff is a domestic nonprofit corporation organized and existing under the laws of the State of Minnesota with its registered office address located at 1436 36th Avenue N, P.O. Box 5122, St. Cloud, Minnesota 56302. 2. Plaintiff is a common interest community consisting of multiple buildings located in St. Cloud, Minnesota (the “Property”). 3. Upon information and belief, Defendant is a foreign insurance company licensed and authorized to sell insurance and transact business in the State of Minnesota with a principal place of business located at 1705 Towanda Avenue, P.O. Box 2222, Bloomington, Illinois 61702-2100 and a registered service address at Corporation Services, 2345 Rice Street, Suite 230, Roseville, MN 55113. 73-CV-24-1669 Filed in District Court State of Minnesota 3/5/2024 3:22 PM 4. Because the Property is in Stearns County, Minnesota, the above-named Court has jurisdiction over this matter. FACTS 5. At all times relevant hereto, Defendant insured the Property under a policy of insurance (the “Policy”). The Policy provided insurance coverage for, among other things, hail and windstorm damage. 6. On or about May 12, 2022, a storm damaged the Property (the “Loss”). 7. After the Loss occurred, Plaintiff notified Defendant and reported the Loss, provided Defendant with access to the Property to investigate and adjust the Loss, fulfilled all of its other duties and obligations under the Policy, and relied upon Defendant to honor its contractual obligations to properly adjust and pay for the Loss. 8. On or about June 12, 2023, Country Mutual completed its investigation of the loss and accepted coverage for the Loss. 9. The parties disagreed on the amount of loss. 10. On or about December 8, 2023, Plaintiff demanded an appraisal of the Loss pursuant to the appraisal provision of the Policy. 11. On or about February 8, 2024, Plaintiff complied with Country Mutual’s request for a Sworn Statement in Proof of Loss. 12. Plaintiff further complied with Country Mutual’s requests for information and documents. 13. On or about February 14, 2024, Country Mutual unilaterally cancelled the appraisal of the Loss. 14. To date, appraisal has not been completed. 2 73-CV-24-1669 Filed in District Court State of Minnesota 3/5/2024 3:22 PM COUNT I BREACH OF CONTRACT 15. Plaintiff restates and realleges each of the foregoing paragraphs as though fully set forth herein and further state and allege as follows. 16. The Policy is a contract between Plaintiff and Defendant. 17. Plaintiff has performed all conditions precedent necessary to obligate Defendant to perform under the Policy, including paying premiums and cooperating with Defendant’s investigation and adjustment of the Loss. 18. Defendant has breached the Policy by failing to fully and fairly adjust and pay the Loss. 19. Defendant has breached the Policy by refusing to participate in an appraisal of the loss. 20. As a direct result of Defendant’s breach of contract, Plaintiff has been damaged in an amount in excess of $50,000, the specific amount to be determined at trial. COUNT II DECLARATORY JUDGMENT 21. Plaintiff restates and realleges each of the foregoing paragraphs as though fully set forth herein and further states and alleges as follows. 22. Defendant has failed to adjust and pay the Loss in total, in contravention of the express language of the subject Policy. 23. Defendant has failed to participate in an appraisal of the Loss even though there is a dispute over the amount of loss. 3 73-CV-24-1669 Filed in District Court State of Minnesota 3/5/2024 3:22 PM 24. There is a real justiciable controversy between the Plaintiff and the Defendant over the extent to which the subject Policy provides indemnity and coverage for damages, both direct and consequential, relating to the Loss. 25. The provisions of the subject Policy must be construed against Defendant. 26. Plaintiff is entitled to judicial declaration that the subject Policy includes coverage for the damages arising out of the Loss, including but not limited to, the actual cash value and the replacement cost value to repair or replace materials damaged by the May 12, 2022 storm with materials of like kind and quality for like use and all necessary repairs required to meet the prevailing building code requirements. 27. Pursuant to the Policy, the appraisal clause of the Policy, appraisal is the appropriate procedure to resolve the disputed amount of Loss. 28. All coverage issues that remain after the appraisal panel has issued an award as to the disputed amount of loss shall be decided by the Court. WHEREFORE, Plaintiff respectfully requests judgment of the Court against Defendant for the following relief: 1. Judgment in favor of the Plaintiff and against Defendant for an amount in excess of $50,000, the exact amount to be proven at trial; 2. An order compelling the Parties to address their remaining dispute through appraisal; 3. An order staying this lawsuit pending the completion of the insurance appraisal; 4. An award of attorney’s fees, costs, disbursements, and interest; and 5. For such other and further relief as this Court deems just and equitable. 4 73-CV-24-1669 Filed in District Court State of Minnesota 3/5/2024 3:22 PM SMITH JADIN JOHNSON, PLLC Dated: February 21, 2024 /s/ Bradley K. Hammond Bradley K. Hammond (#391611) 7900 Xerxes Avenue, Suite 2020 Bloomington, MN 55431 Telephone: (952) 388-0289 Facsimile: (612) 235-7927 ajadin@sjjlawfirm.com bhammond@sjjlawfirm.com Attorneys for Plaintiff ACKNOWLEDGMENT The undersigned hereby acknowledges that costs, disbursements, and reasonable attorney and witness fees may be awarded pursuant to Minn. Stat. § 549.211, to the party against whom the allegations in this pleading are asserted. SMITH JADIN JOHNSON, PLLC Dated: February 21, 2024 /s/ Bradley K. Hammond Bradley K. Hammond (#391611) 5