Relying on Instruction to Cut Timber from Putative Owner is Expensive

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Bee Forest Products, Inc., sued its insurer, Western National Mutual Insurance Company, seeking coverage on a claim arising out of its harvesting timber on property without the owners’ consent. In EE Forest Products, Inc. v. Western National Mutual Insurance Company, 20-cv-338-wmc, United States District Court For The Western District Of Wisconsin (June 25, 2021) the insurer sought summary judgment because of the lack of an occurrence.

ZALMA OPINION

The USDC did what every person insured should do before presenting a claim: read the policy. When an intentional act caused damage to property of another – even though it was done with a good faith belief that the Plaintiff had the right to cut the timber – there is no way the action could be considered an accident. A liability policy requires that, for coverage to apply, that the damage was due to an occurrence, an accidental happening, not an intentional act.