In Federal Insurance Company v. Woodruff Construction, et al., Case No. 2-94612-0821, 2012 WL 5954588 (Iowa Ct. App. Nov. 29, 2012), the Iowa Court of Appeals affirmed the district court’s grant of summary judgment in favor of several contractors in a subrogation action, holding that the property owner’s first-party property insurer could not bring a subrogation claim against the contractors for water damage caused by the contractors’ negligence.
Recently, in KFC Corporation v. Iowa Department of Revenue, the Iowa Supreme Court upheld the state’s ability to assess income tax against KFC Corporation and other out-of-state franchisors that do not have a physical presence in Iowa, but derive income from the use of the franchisor’s intangibles by franchisees in Iowa.
The Supreme Court of Iowa has held that an insured forfeited any right to coverage under a claims-made and reported policy by failing to report the claim to the insurer within time prescribed in the policy.