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F & M AGENCY v. DORNBUSH

No. 15287.

402 N.W.2d 353 (1987)

F & M AGENCY, Bank of Cresbard Agency, Citizens Agency, Security Insurance Agency of Webster, Lemmon Insurance Agency, Roslyn Insurance Agency, and Citizens Insurance Agency, Plaintiffs, v. Del DORNBUSH, d/b/a Dornbush Agency, and Donald Prachar, Defendants and Appellants. and Dean DORNBERGER, d/b/a Dornberger and Associates, Defendant, Third-Party Plaintiff and Appellant, v. AMERICAN BENEFITS LIMITED TRUST, a California Trust, and Insurers Administrative Corporation, an Arizona Corporation, Third-Party Defendants, and AIG Life Insurance Co., a Delaware Corporation, Third-Party Defendant and Appellee.

Supreme Court of South Dakota.

Decided March 11, 1987.

Attorney(s) appearing for the Case

James M. Cremer of Bantz, Gosch, Cremer, Peterson & Oliver, Aberdeen, for appellants Dornbush, Prachar, and Dornberger.

Lyle J. Wirt and Rick W. Orr of Davenport, Evans, Hurwitz & Smith, Sioux Falls, for appellee AIG Life Ins. Co.

HENDERSON, Justice.

PROCEDURAL BACKGROUND

Plaintiffs-appellants, several insurance companies (Plaintiffs), contend that the circuit court erred when it granted defendant-appellee American Insurance Group's (AIG) Motion for Summary Judgment. Plaintiffs claim that AIG violated SDCL 58-33-6 by failing to notify them of a third party's misrepresentation concerning AIG's involvement in an insurance program. In granting AIG's Motion for Summary Judgment, the circuit...

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