SLA PROPERTY MANAGEMENT v. ANGELINA CAS. CO.

No. 87-5467.

856 F.2d 69 (1988)

SLA PROPERTY MANAGEMENT, Limited Partnership of Sisseton, South Dakota; Dakota Rail, Inc., a South Dakota corporation of Milbank, South Dakota; Sisseton Line Associates, a Limited Partnership of Milbank, South Dakota; Sisseton Seed and Grain Co., Inc., a South Dakota corporation of Sisseton, South Dakota; Farmers Co-op Elevator of Sisseton and New Effington, South Dakota; and Vig Elevator Co. of Peever, South Dakota, Appellants, v. ANGELINA CASUALTY CO., a Delaware corporation of Lufkin, Texas; and Lexington Insurance Co., a Delaware corporation of Boston, Massachusetts, Appellees.

United States Court of Appeals, Eighth Circuit.

Decided September 7, 1988.


Attorney(s) appearing for the Case

R.G. Schmidt, Pierre, S.D., for appellants.

David A. Gerdes, Pierre, S.D. and Lawrence L. Piersol, Sioux Falls, S.D., for appellees.

Before HEANEY and MAGILL, Circuit Judges, and EDWARDS, Senior Circuit Judge.


MAGILL, Circuit Judge.

I. BACKGROUND

This case is somewhat procedurally complex. A group of individuals and companies (appellants) formed a partnership to acquire a shortline railroad from the Milwaukee Railroad, in order to ship their grain to market. Appellants hired a contractor, AAA Railroad Construction Co. (AAA), to rehabilitate the track and railbed. Appellants required AAA to purchase insurance coverage,...

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