Minnesota Commercial Railway Co. v. General Star Indemnity Co.

MEMORANDUM OPINION AND ORDER

KYLE, District Judge.

Introduction

Under Minnesota law, an insured person may not use estoppel to create insurance coverage unless the insurer unqualifiedly controlled the defense of an action against the insured. Between February 1, 2000 and February 1, 2001, Minnesota Commercial Railway Company (“the Railway”) held an insurance policy with General Star Indemnity Company (“General Star”) that covered claims made during the policy period. On July 23, 2001 — five months after the policy expired — the Railway submitted a claim to General Star stemming from an injury to…