Alfalfa Electric Cooperative, Inc. v. Mid-Continent Casualty Company – Case Brief Summary (Oklahoma)

In Alfalfa Electric Cooperative, Inc. v. Mid-Continent Casualty Company, 2015 OK CIV APP 53, 350 P.3d 1276, the Court interpreted an exclusion in a commercial auto policy which similarly excluded "liability imposed under any contract or agreement."

The insurer in Alfalfa Electric argued the contractual liability exclusion eliminated coverage for its insured who had been sued for, inter alia, breach of a bailment contract and negligence.

The Court in Alfalfa Electric agreed with the insurer, finding the unambiguous terms of the exclusion "removes from coverage any cause of action grounded on a liability arising under contract or agreement, i.e., contract-based claims."

The Court found the contractual liability exclusion applies to exclude the claim against its insured for breach of bailment agreement unless one of that exclusion's two exceptions "reserves coverage." Id.