McGRIFF v. U.S. FIRE INS. CO.

No. 16272.

436 N.W.2d 859 (1989)

Gertrude McGRIFF, a/k/a Gertrude McGriff Wooden, By and Through her General Guardian, NORWEST CAPITAL MANAGEMENT & TRUST CO., United States Fidelity & Guaranty Company, an insurance corporation, and National Farmers Union Insurance Company, an insurance corporation, Plaintiffs and Appellants, v. UNITED STATES FIRE INSURANCE COMPANY, an insurance company, Defendant and Appellee, v. FRATERNAL ORDER OF THE EAGLES OF RAPID CITY, South Dakota, Third Party Defendant.

Supreme Court of South Dakota.

Decided March 8, 1989.


Attorney(s) appearing for the Case

Curt Ireland, Rapid City, for McGriff Guardianship.

Dennis W. Finch of Finch, Viken, Viken & Pechota, Rapid City, for plaintiffs and appellants.

Franklin J. Wallahan of Wallahan & Watson Rapid City, for defendant and appellee; Benjamin J. Eicher of Wallahan & Watson Rapid City, on the brief.


MILLER, Justice.

In this case of first impression, we hold (1) that exclusion (h)(1), generally found in comprehensive liability insurance policies, applies to nonprofit corporations; and (2) that the term "engaged in the business" contained in such exclusion is not ambiguous. As a result, a fraternal, nonprofit organization which operates an on-sale liquor establishment is not provided coverage by its general liability insurance policy because of the specific language...

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