Great Northern Oil Co. v. St. Paul Fire & Marine Insurance

Rogosheske, Justice.

Defendant insurance companies appeal from an order striking a defense from their joint answer.

The issue presented is whether plaintiff-insured, who, prior to a business-interruption loss and by an exculpatory clause in a construction contract, released the contractor from liability for negligently causing the loss, is precluded from pursuing recovery upon a policy of “all-risk” insurance in force prior to the release on the ground that exculpation defeated defendant insurance companies’ subrogation rights against the contractor. We hold that plaintiff is not thereby…