Leafgreen v. American Family Mutual Insurance Co.

393 N.W.2d 275 (1986)

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Leafgreen v. American Family Mutual Insurance Co.

South Dakota Supreme Court
393 N.W.2d 275 (1986)

RW

Facts

American Family Mutual Insurance Company (American Family) (defendant) insured Floyd and Joyce Leafgreen (plaintiffs). Edmund Arndt was friendly with the Leafgreens and a trusted agent for American Family. Arndt visited the Leafgreens and entered their house in an apparent attempt to sell them additional insurance. Arndt used the occasion to discover where the Leafgreens kept the lockbox in which they stored their valuables. Arndt intentionally disclosed this location to associates whom Arndt knew to be professional burglars. Five weeks later, after Arndt learned from the Leafgreens that they would be out of town and passed that information to the burglars, the burglars broke into the Leafgreens’ house and stole the lockbox. American Family covered the Leafgreens’ loss, and Arndt was arrested and imprisoned for his role in the crime. The Leafgreens held American Family vicariously liable for Arndt’s wrongdoing and sued. The trial court granted American Family’s motion for summary judgment. The Leafgreens appealed to the South Dakota Supreme Court.

Rule of Law

Issue

Holding and Reasoning (Wuest, J.)

Dissent (Sabers, J.)

Dissent (Henderson, J.)

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