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SMITH v. STATE FARM FIRE & CAS. CO.

No. 85-1218.

127 Wis.2d 298 (1985)

380 N.W.2d 372

James W. SMITH and Thomas D. White, Plaintiffs-Respondents, v. STATE FARM FIRE & CASUALTY COMPANY, Defendant-Appellant.

Court of Appeals of Wisconsin.

Decided October 28, 1985.

Attorney(s) appearing for the Case

For the defendant-appellant the cause was submitted on the briefs of Michael E. Ehrsam and Moen, Sheehan, Meyer & Henke, Ltd., of La Crosse.

For the plaintiffs-respondent the cause was submitted on the brief of Jeffrey D. Knickmeier of DeSoto.

Before Cartzke, P. J., Dykman, J., and Eich, J.

EICH, J.

State Farm Fire and Casualty Company appeals from an order denying its motion for summary judgment. Respondents James Smith and Thomas White were sued in Iowa by a third party for their role in a real estate transaction. The issue is whether State Farm, respondents' insurer, had a duty to defend them in the Iowa action under the terms of a commercial umbrella policy.

We conclude: (1) that State Farm's duty to defend is determined by the nature of...

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