Yegge v. Integrity Mutual Insurance

HARRIS, Justice.

An insurer, having provided a business liability policy to a building contractor, denied coverage when the contractor was sued by homeowners in a dispute arising from construction of a residence. The homeowners, successful in the litigation but unsuccessful in their attempts to collect on the judgment against the insured contractor, then brought this suit against the insurer pursuant to a statute that allows them to enforce a judgment by “stepping into the shoes of’ the judgment debtor.

Partly by way of summary judgment, but largely on the basis of a trial on stipulated facts,…