Northland Casualty Company v. Northwest Log Homes, LLC

MEMORANDUM *

In 2006, Joseph Mulroy hired Duane Keim and Keim’s company, Northwest Log Homes (“Northwest”), to build him the shell of a log home and to remodel parts of his guest house. Keim purchased standing spruce logs from a log broker in Striker, Montana for the project. Unbeknownst to Keim, however, there were powder post beetles and larvae inside the logs. Unfortunately, Keim did not treat the logs with insecticide before using them for Mulroy’s project. As a result, the insects grew and matured, and started, to make their way around Mulroy’s home. Mulroy first became aware of the…