Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

Sauder West Farms, Inc. v. Sentry Select Insurance Co.

United States District Court, D. Kansas

March 16, 2018

SAUDER WEST FARMS, INC. and FARMERS STATE BANK OF ALICEVILLE, Plaintiffs,
v.
SENTRY SELECT INSURANCE CO., Defendant.

          MEMORANDUM AND ORDER

          DANIEL D. CRABTREE UNITED STATES DISTRICT JUDGE

         Plaintiffs Sauder West Farms, Inc. (“Sauder”) and Farmers State Bank of Aliceville (“Farmers State Bank”) filed this breach of contract action against defendant Sentry Select Insurance Co. (“Sentry”). This matter comes before the court on plaintiffs' Motion for Summary Judgment (Doc. 26) and defendant's Motion for Summary Judgment (Doc. 28). Plaintiffs filed a Response and Memorandum in Opposition to defendant's motion (Doc. 30), and defendant submitted a Reply (Doc. 32). And, defendant submitted a Memorandum in Opposition to plaintiffs' motion (Doc. 31). But plaintiffs never submitted a Reply. The motions thus are fully briefed, and the court is prepared to rule. For reasons explained below, the court grants defendant's Motion for Summary Judgment, and the court denies plaintiffs' Motion for Summary Judgment.

         I. Uncontroverted Facts

         The following facts are either stipulated to by the parties in their Stipulation of the Parties (Doc. 25), or are uncontroverted.

         Sentry Select Insurance Policy

         Plaintiff Sauder owned a John Deere 2011 Model no-Till Drill (“drill”) and a Model 1910 cart (“cart”) to transport the drill. Plaintiff Farmers State Bank owned a lien on the drill and cart. Defendant Sentry issued an insurance policy (“the policy”) for the drill and cart. The policy insured the drill for $90, 000 and the cart for $55, 000 for an annual period beginning July 26, 2012 and ending July 26, 2013. Plaintiff Sauder paid the full annual premium on this policy. The policy's “Loss Payable Clause” identified plaintiff Farmers State Bank as the loss payee. The insured filed no claims on this policy from July 26, 2012 to July 26, 2013.

         The policy contained a cancellation provision. The cancellation provision is titled “Common Policy Conditions.” In relevant part, the “Common Policy Conditions” provide:

         A. Cancellation

         2. We may cancel this policy by mailing or delivering to the first Named Insured written notice of cancellation at least:

a. 10 days before the effective date of cancellation if we cancel for nonpayment of premium . . . .

Doc. 25-1 at 4. The “Common Policy Conditions” was modified by an Endorsement titled KANSAS CHANGES-CANCELLATION AND NONRENEWAL. This Endorsement provides:

THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
KANSAS CHANGES-CANCELLATION AND NONRENEWAL
A. Paragraph 2. of the Cancellation Common Policy Condition is replaced by the following:
2a. We may cancel the policy by mailing or delivering to the first Named Insured written notice of cancellation, stating the reason for cancellation, at least:
(1) 10 days before the effective date of cancellation if we cancel for nonpayment of premium . . . .

Id. at 20. The policy's Loss Payable Clause contained the following language:

The endorsement modifies insurance provided under the following:
COMMERCIAL INLAND MARINE COVERAGE - CONTRACTORS EQUIPMENT COVERAGE FORM.
With respect to coverage provided by this endorsement, the provisions of the Coverage Form apply unless modified by the endorsement.
C. We may cancel the policy as allowed by the CANCELLATION Common Policy Condition. Cancellation ends with this agreement as the loss payee's interest. If we cancel the policy, we will mail you and the loss payee the same advance notice.

Id. at 6. The policy also included a relevant modification in an Endorsement titled “KANSAS CHANGES-CANCELLATION AND NONRENEWAL.” This Endorsement provided:

NONRENEWAL
1. If we decide not to renew this policy, we will mail or deliver written notice of nonrenewal, stating the reasons for nonrenewal, to the first Named Insured at least 60 days prior to the expiration of the policy.

Id. at 20.

         Correspondence

         On June 18, 2013, defendant Sentry sent plaintiff Sauder (but not plaintiff Farmers State Bank) a letter captioned “RENEWAL OFFER.” The letter requested that plaintiff Sauder pay the annual premium for the renewal policy on or before July 26, 2013. The premium amount for the renewal policy was $798.00. The letter explained that if defendant Sentry did not receive the annual premium payment by the policy's expiration date, then defendant Sentry would “assume that the renewal offer has been rejected.” Doc. 25-2 at 2. The June 18, 2013 correspondence also provided plaintiff Sauder with a “Billing Information” document containing a bill due date of July 26, 2013. Near the end of the Billing Information, the following statement appears: “Premium payment must be received by the billing due date to prevent cancellation of the policy for non-payment of premium.” Id. at 8. That same documents also included “Coverage Information” containing the following language:

         Renewal of Policy ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.