A federal judge ruled that the insurance company that defended the Brant Lake Health District in a lost lawsuit did not have to pay to appeal the district.
The order of Judge Roberto Lange comes as the district appeals its $ 1.5 million loss to the Supreme Court of South Dakota, which is scheduled to hear the appeal on Wednesday.
Lange also concluded that the district policy vis-à-vis EMCC did not provide for $ 770,000 in damages by a jury that would have awarded a contract to a contractor, which would mean that the district would be responsible for pay these fees. it's losing its appeal.
The decision focuses on a lawsuit brought by Excel Underground, a Sioux Falls excavation company, which won a contract in 2012 for the installation of a sanitary sewer system in approximately 230 homes. The sewer system was intended to replace individual septic tanks used to treat waste.
During construction, the district returned Excel and claimed the company's bond, which prevented it from obtaining any other work.
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But after a nine-day trial, a jury in Madison, South Dakota, decided last year that Excel was not responsible for the construction problems and that the design flaws were attributable to the district and an engineer hired. The jury awarded Excel over $ 1.5 million in damages. Today, with interest, this figure is closer to $ 2 million.
The decision surprised many homeowners on the scenic lake northwest of Sioux Falls who were not aware of the lawsuit.
While the district was wondering whether to appeal the verdict, EMCC, who had paid to defend the district as part of the lawsuit, filed a separate lawsuit in federal court, asking that its policy with the district does not cover the call and that certain types of damages are also not covered.
Lange agreed that the police did not cover the district's appeal and some of the damages. However, he also added that further investigation was needed to determine whether $ 800,000 granted to Excel for loss of profits were covered by the insurance policy.
District lawyers will argue in the Supreme Court that the jury's verdict should be overturned.
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