Insurance Company of North America v. Central National Insurance Company of Omaha

This is an appeal by Insurance Company of North America (INA) from an adverse judgment entered against it in favor of Central National Insurance Company of Omaha (Central) in a declaratory judgment action in which Central sought contribution from INA on a fire insurance loss. The parties waived a jury trial and tried the case on a stipulation of facts, two depositions, and the provisions of the insurance policies. On this record, the district court made findings of fact and entered a judgment requiring contribution from INA.

The facts are not in dispute. In August, 1972, the Dempsey Construction Corporation began building a 64-unit condominium project in Idaho, known as the Horizons 4 Sun Valley. At that time, Dempsey obtained a special multi-peril insurance policy with a “builder’s risk” endorsement from Central. The policy covered the buildings on the Horizons 4 site during the course of construction. As the Horizons 4 project neared completion, an agent for Dempsey placed an order for a condominium apartment insurance policy with INA. On December 15, 1972, INA issued such a policy, naming as the insured the Horizons 4 Condominium Association. The Condominium Association was…