April 22, 2019
It is said that the first rule of a successful appeal is to win in the trial court. But, regardless of winning or losing in the trial court, one of the most important considerations in evaluating exposure and the likelihood of success on appeal is the applicable standard of review. The standard of review determines how much deference the appellate court will give to the determination by the trial court or jury. In insurance cases, the standard of review can change significantly depending on whether the appeal results from a judge’s interpretation of policy language at summary judgment or a jury verdict in a bad faith claim.
Summary Judgment and Questions of Law
When the trial court grants summary judgment and decides a case by interpreting insurance policy language, an appellate court will apply what is known as de novo review. This standard is reserved for appeals involving questions of law, as opposed to questions of fact, and provides the least amount of deference to the trial court. The appellate court evaluates the case from scratch and reaches its own conclusions. De novo is the most favorable standard of review for parties appealing from a loss at the trial court.
Appeals in coverage cases are often subject to de novo review, particularly if the court grants a motion for declaratory relief or issues a summary judgment ruling. In Houston Casualty Company v. Strata Corporation, 915 F.3d 549 (8th Cir. 2019), the Eighth Circuit was asked to review the trial court’s finding of no coverage and grant of summary...
