Opinion ID: 5206
Heading Depth: 1
Heading Rank: 4

Heading: monetary limits on binding authority.

Text: CNA argues that River Ridge is liable for all sums paid in excess of $250,000 regardless of the outcome on the first issue. CNA bases this argument on the fact that River Ridge was authorized to bind property coverage up to a $250,000 maximum, and exceeded its authority when it bound the St. Claude property for $550,000. Based on the wording of the agency agreement and the evidence presented at trial, River Ridge was authorized to bind up to $250,000 per property coverage, and was authorized to issue more than one type of coverage per property. This would mean that River Ridge exceeded it aut hority by only $50,000 because it bound two types of coverage, one of which did exceed the $250,000 limit. Final resolution of this issue is, however, irrelevant. In order for CNA to recover from River Ridge, CNA must prove that the breach of River Ridge caused CNA's loss. CNA presented no evidence that River Ridge, by exceeding its binding 7 An example is Mattress Makers, Def. Exh. P–131–3B, at 86. authority, was the proximate cause of any loss of CNA. CNA presented no evidence that it was not common practice for agents to exceed the monetary limits of their binding authority, or that CNA would not have continued to cover the building for $300,000. Because CNA has not met its burden of proof of proximate cause, there can be no recovery from River Ridge.