Quimbee logo with url
From our private database of 14,300+ case briefs...

Annett Holdings, Inc. v. Kum & Go, L.C.

Supreme Court of Iowa
801 N.W. 2d 499 (2011)


Facts

Annett Holdings, Inc. (Annett) (plaintiff) owned TMC Transportation (TMC), a trucking company. Annett had a contract (Agreement) with Comdata, a credit-card provider, under which Comdata provided cards to be used by authorized Annett employees to purchase fuel and obtain cash advances at Comdata service centers. Annett accepted full responsibility for purchases made with the Comdata cards, including unauthorized or fraudulent purchases, and indemnified Comdata from liability resulting from acts of Annett employees. The Agreement extended to both TMC and Annett. Comdata had a contract with Kum & Go, L.C. (Kum & Go) (defendant) enabling a Kum & Go store to lease a Comdata terminal. Comdata would reimburse Kum & Go for transactions at the terminal. Annett had no contract with Kum & Go. Between November 2002 and April 2006, a TMC employee fraudulently used the Comdata terminal at the Kum & Go store to obtain money for himself. Before the fraud was discovered, Comdata reimbursed Kum & Go for the fraudulent transactions, of which TMC received a daily report, per their contract, and Annett subsequently reimbursed Comdata. The TMC employee was convicted of theft. Annett then sued Kum & Go for negligence and as a third-party beneficiary of the contract between Comdata and Kum & Go, seeking to recover the money used to reimburse Comdata. Kum & Go moved for summary judgment on the negligence claim, arguing that Kum & Go could not be sued for negligence because of the economic-loss rule and because Kum & Go owed no duty to Annett. The district court granted the motion, holding that a negligence suit was barred by the economic-loss rule. Annett appealed.

Rule of Law

Issue

Holding and Reasoning (Mansfield, J.)

Dissent (Wiggins, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 255,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 14,300 briefs, keyed to 191 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.