![if gte IE 9]><![endif]><![if gte IE 9]><![endif]><![if gte IE 9]><![endif]>
Thank You For Submiting Feedback!
Supreme Court of Wisconsin
May 31, 1979, Submitted on Briefs ; June 29, 1979, Decided
[*643] [**212] This case presents a question on the construction of an insurance policy issued by United States Fidelity & Guaranty Company. The insurer appeals from a judgment entered on December 22, 1976 and amended February 1, 1977 by the circuit court for Milwaukee county, awarding the insured, Sola Basic Industries, Inc., $ 23,121.60. Sola Basic filed a notice of review seeking review of the order for amended judgment, entered February 1, 1977, reducing the judgment from $ 25,872.43 to $ 23,121.60.
The questions on appeal are:
1. Is the economic loss suffered by a person other than the insured as the result of negligent repair work [*644] by the insured on a product originally sold by the insured excluded from [***2] coverage by the standard definitions and exclusions in this comprehensive general liability policy of insurance?
2. Did the parties stipulate to damages so as to preclude Sola Basic from recovering prejudgment interest?
Sola Basic brought this action to recover under a comprehensive general liability insurance policy issued to Sola Basic by United States Fidelity & Guaranty Company (hereinafter insurer).
The cases arises out of a lawsuit brought by Thunder Bay Manufacturing Corporation against Sola Basic's Hevi-Duty Electric Division. Sola Basic had sold Thunder Bay a transformer for use in its manufacturing process. When Thunder Bay experienced problems with the operation of the transformer, a Sola Basic employee came to Thunder Bay's plant to perform repair work. Thunder Bay's complaint alleged that the repairman negligently repaired the tap changer switch on the transformer by dropping material into the transformer resulting in damage to the windings of the transformer. The damage to the transformer required that it be removed from the plant and be completely rebuilt. This Sola Basic did at its own expense, and it has made no claim upon the insurer for those costs.
[**213] [***3] Thunder Bay's complaint alleges that while the transformer was out for repairs, it could not use its electric furnaces, and that it sustained damages in that it had to operate by another method. It claimed $ 60,000 damages against Sola Basic for the cost of additional raw materials, labor, electricity, freight, crane rental, liner bricks and the cost of removing and replacing the transformer.
Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.
90 Wis. 2d 641 *; 280 N.W.2d 211 **; 1979 Wisc. LEXIS 2102 ***
Sola Basic Industries, Inc., Plaintiff-Respondent, v. United States Fidelity & Guaranty Company, Defendant-Appellant
Prior History: [***1] Appeal from a judgment of the Circuit Court for Milwaukee County: William R. Moser, Circuit Judge.
Disposition: By the Court. -- Judgment affirmed.
insured, property damage, coverage, damages, tangible property, transformer, manufactured, prejudgment interest, products, destruction, replacement, contractor, repair, doors, walls, plaster, insurance policy, removal, summary judgment, physical injury, trial court, costs, market value, loss of use, Aluminum, electric, parties, useless, stucco, cases
Insurance Law, Policy Interpretation, Ambiguous Terms, Construction Against Insurers, Business Insurance, Commercial General Liability Insurance, Duty to Defend, Property Insurance, Exclusions, General Overview, Torts, Types of Damages, Property Damages, Loss of Use, Property Claims, Coverage, General Premises Liability, Types of Premises, Stores, Civil Procedure, Remedies, Judgment Interest, Prejudgment Interest