Slaathaug v. Allstate Insurance

Allstate Insurance Company (Allstate) appeals from the district judge’s (1) grant of Hollie and Karen Slaathaugs’ (the Slaathaugs) motion for a new trial and (2) denial of Allstate’s motion to alter or amend judgment.

I

BACKGROUND

A fire severely damaged the Slaathaugs’ home in September 1992. The Slaathaugs filed a claim with their insurer, Allstate. Allstate maintained a list of recommended contractors it believed competent to complete the repairs. As an incentive for the Slaathaugs to choose a contractor from the list, Allstate promised to guarantee the work for three years. After receiving…