Boone v. Lowry

Retired: Michael Boone appeals from a judgment denying garnishment of MFA Mutual Insurance Company. The garnishment was based upon an errors and omissions policy MFA had issued covering its agent, Robert T. Lowry, against whom Boone had obtained a default judgment based upon a fire insurance policy purportedly to be issued by MFA or Kansas Fair Plan upon Boone’s house. The big issue is whether violation of a cooperation clause in the agent’s errors policy resulted in substantial prejudice to the insurer’s ability to defend itself.

Appellant Boone owned a home in Junction City. In late 1978 his…