Wyoming high court rules against insurer in subrogation case

The Wyoming Supreme Court on Thursday unanimously affirmed a lower court ruling against an Ohio Casualty Insurance Co. unit in a subrogation case.

Ohio Casualty unit West American Insurance Co. insured Cheyenne, Wyoming-based Profile Properties’ commercial property in Cheyenne, according to the ruling by the Wyoming Supreme Court in Cheyenne in West American Insurance Co. v. Black Dog Consulting Inc., et al.

C.H. Yarber, which ran a metal fabrication business that involved welding, cutting and grinding metal, agreed with Profile to lease property in Cheyenne, the ruling said. The shop was destroyed in a December 2016 fire.

West paid for the fire damages in accordance with Profile’s policy, then filed a subrogation action against C.H. Yarber in November 2020, alleging negligence and breach of contract claims against the company.

In affirming a lower court, the state high court said the policy’s “specific, plan language supports our conclusion that Profile intended to look solely to its blanket insurance policy to cover any losses from the fire…

“Because the lease evidences that Profile did not intend to look to C.H. Yarber to cover the insured loss, West cannot pursue its claim against C.H. Yarber in subrogation.”

Attorneys in the case did not respond to requests for comment.