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National Sun Industries Inc. v. South Dakota Farm Bureau Insurance Co.5/26/1999
avor of Farm Bureau was appropriate.
[ ] Due to our resolution of this issue, we need not address the second issue raised by National.
[ ] Affirmed.
[ ] SABERS, AMUNDSON, KONENKAMP, and GILBERTSON, Justices, concur.
. National's insurer, Indemnity, compensated it for its loss of sunflowers.
. In its memorandum decision, the trial court did not address whether Farm Bureau was estopped from asserting the business pursuits exclusion clause as a basis for denying coverage when Farm Bureau initially informed L&O;that it provided no liability coverage for the property. The court merely addressed the issues raised by the movant, Farm Bureau, which included the ambiguity of the business pursuits exclusion clause. However, National raised the issue in its memorandum in opposition to Farm Bureau's motion for summary judgment. In addition, both parties argued the issue in their briefs to this Court.
. The record establishes that National filed suit against L&O;on September 8, 1994. On September 27, Farm Bureau, by letter, denied providing liability coverage on the property. Shortly thereafter, in a November 7 letter, Farm Bureau informed L&O;s counsel that it was tendering back defense of the suit because of the "business pursuits" exclusion clauses found in the policies.
. It is important to note that, even though the record establishes that Farm Bureau asserted two different grounds, at two different times, for excluding coverage, the record also shows that the notification of the applicability of the business pursuits exclusion clauses came long before National and L&O;entered into the stipulated judgment and long before L&O;s state court action against Farm Bureau commenced.
. In its brief, National claims that Farm Bureau admitted the policy and its exclusion clauses were confusing and difficult to understand. However, after reviewing the deposition testimony of Larry Hills, a Farm Bureau claim manager, we find that Hills admitted that some exclusions would be unclear to a layperson; however, he was testifying about an "insured contract" and not the business pursuits exclusion clauses.
. The relevant policy language of Coverage L provides:
Coverage L:
"a. bodily injury or property damage: "(i) assumed under any unwritten contract or agreement or by any contract or agreement in connection with any business."
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