Great River Insurance v. Edison Automation, Inc.

The Plaintiff filed suit for Declaratory Judgment seeking the order of the Court declaring that losses suffered by the insured were not covered losses under a general policy of business insurance. At issue is the interpretation of the insurance contract and a determination as to whether insurance coverage existed where the insured expended money and time fabricating parts for a custom project upon the mistaken belief that it had obtained a sub-contract, but where no such agreement existed inasmuch as the purchase order upon which the insured relied was forged by an employee of the insured. Motions for Summary Judgment were filed by each party. The Trial Court granted the insurance company's motion for Summary Judgment, from which the insured appealed. For the reasons stated herein, we affirm the Trial Court, and also determine that Declaratory Judgment should be granted in favor of the insurance company, determining that no coverage exists for the loss suffered by the insured.