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KAAPA ETHANOL, LLC v. AFFILIATED FM INS. CO.

Nos. 10-1929, 10-2071.

660 F.3d 299 (2011)

KAAPA ETHANOL, LLC, Plaintiff-Appellee/Cross Appellant, v. AFFILIATED FM INSURANCE COMPANY, Defendant-Appellant/Cross Appellee.

United States Court of Appeals, Eighth Circuit.

Filed: November 3, 2011.

Attorney(s) appearing for the Case

Andrew M. Low , argued, Denver, CO, for appellant/cross-appellee.

John N. Ellison , argued, Philadelphia, PA, Daniel L. Lindstrom , on the brief, Kearney, NE, for appellee/cross-appellant.

Before LOKEN, BEAM, and GRUENDER, Circuit Judges.

LOKEN, Circuit Judge.

KAAPA Ethanol ("KAAPA") manages a facility in Kearney County, Nebraska that distills corn into ethanol, a biofuel additive for gasoline. The plant was insured against property damage by an "all-risk" insurance policy issued by Affiliated FM Insurance Company ("Affiliated"). Soon after KAAPA began production, the plant's ethanol production and storage tanks began to lean, their foundations began showing visible signs of distress, and their supporting...

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