United States Liability Insurance Company v. Stone County Insurance Agency Inc Defendant Ase Gro Lindland; Olav Lindland
May 11, 2026·25-1699·Panel Decision·By Raj Patel
The Eighth Circuit affirmed a district court ruling that an insurer had no duty to indemnify its insured against a consent judgment. The court held that the insurance policy unambiguously excluded coverage for claims arising out of the failure to pay money.
Ase Gro Lindland and Olav Lindland appealed an adverse district court decision on cross motions for summary judgment. The dispute concerned whether United States Liability Insurance Company had a duty to indemnify its insured against an Arkansas consent judgment in favor of the Lindlands.
The court’s reasoning
The court applied a de novo standard of review. It concluded that the insured’s liability had a causal relation to its failure to pay money on behalf of the Lindlands. The court found the policy language unambiguous, excluding coverage for claims arising out of or in any way involving the failure to pay any money. Citing Arkansas law, the court held that such exclusions are enforced according to their terms when unambiguous.
What it means going forward
Insurers in the Eighth Circuit may rely on unambiguous policy exclusions regarding failure to pay money to deny indemnification duties even when a consent judgment exists against the insured.
