Agra-By-Products v. Agway – Case Brief Summary (North Dakota)

In Agra-By-Products v. Agway (1984 N.D.) 347 N.W.2d 142, the lessor sued the lessee for negligent destruction of the leased premises, seeking to recoup its uninsured loss.

The lease at issue obligated the lessor to maintain "'said insurance'" on the buildings. "'Said insurance'" referred to the insurance policy that was attached to the lease. (Id. at p. 151.)

The reviewing court concluded that the lessee was limited in its protection to the extent of the coverage evidence by the policy attached to the lease.

Since that policy did not provide full coverage, and since the lease did not otherwise exempt the lessee from liability for its negligence, the lessee was liable for the uninsured portion of the loss. (Ibid.)