Commerce Bank v. West Bend Mutual Insurance Company

OPINION

REYES, Judge.

The district court granted summary-judgment in favor of respondent insurer, which denied coverage to appellant bank, the mortgagee and an additional insured, based on an exclusion from coverage for vandalism damage if the insured property remained vacant for more than 60 days. On appeal, appellant bank argues that the district court erred by not applying Minnesota law, which establishes that a mortgagee cannot be denied payment based on the mortgagor’s acts or neglect under a standard mortgage clause. We reverse and remand.

FACTS

This insurance-coverage dispute arises from…