Minn. Court Reverses $25 Million Verdict in Insurance Dispute

ST. PAUL, Minn. -- A Minnesota appellate court has reversed a $25 million verdict in an insurance dispute, ruling that the trial court erroneously instructed the jury on breach of fiduciary duty and bad faith. St. Paul Fire and Marine Insurance Company v. A.P.I., Inc., et al, No. A06-1229 (Minn. Ct. App.).

In the Sept. 11 decision, the Minnesota Court of Appeals affirmed the lower court's decision to allocate coverage among insurers, but reversed the jury award and remanded the claims for a new trial.

According to the opinion, General Accident Insurance Company, the predecessor to OneBeacon Insurance Company, was …