4612 S. 88TH LLC, a Nebraska Limited Liability Company; and OO7, LLC, a Nebraska Limited Liability Company v. TRI-STATE INSURANCE COMPANY OF MINNESOTA, an Iowa Corporation; and AUTO-OWNERS INSURANCE COMPANY, a Michigan Corporation

CourtDistrict Court, D. Nebraska
DecidedMay 26, 2026
Docket8:24-cv-00245
StatusUnknown

This text of 4612 S. 88TH LLC, a Nebraska Limited Liability Company; and OO7, LLC, a Nebraska Limited Liability Company v. TRI-STATE INSURANCE COMPANY OF MINNESOTA, an Iowa Corporation; and AUTO-OWNERS INSURANCE COMPANY, a Michigan Corporation (4612 S. 88TH LLC, a Nebraska Limited Liability Company; and OO7, LLC, a Nebraska Limited Liability Company v. TRI-STATE INSURANCE COMPANY OF MINNESOTA, an Iowa Corporation; and AUTO-OWNERS INSURANCE COMPANY, a Michigan Corporation) is published on Counsel Stack Legal Research, covering District Court, D. Nebraska primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
4612 S. 88TH LLC, a Nebraska Limited Liability Company; and OO7, LLC, a Nebraska Limited Liability Company v. TRI-STATE INSURANCE COMPANY OF MINNESOTA, an Iowa Corporation; and AUTO-OWNERS INSURANCE COMPANY, a Michigan Corporation, (D. Neb. 2026).

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

4612 S. 88TH LLC, a Nebraska Limited Liability Company; and OO7, LLC, a Nebraska Limited Liability Company; 8:24CV245

Plaintiffs, MEMORANDUM AND ORDER vs.

TRI-STATE INSURANCE COMPANY OF MINNESOTA, an Iowa Corporation; and AUTO-OWNERS INSURANCE COMPANY, a Michigan Corporation;

Defendants.

This is an insurance case involving a dispute over coverage from two wind and hail storms that occurred in 2019 and 2022 in Omaha, Nebraska. It comes before the Court on Defendants’ Tri-State Insurance Company of Minnesota (“Tri-State) and Auto-Owners Insurance Company (“Auto-Owners”) motions to exclude expert testimony of Paul Douglas and Ryan Scribner. Filing No. 88; Filing No. 91. Defendants argue that Mr. Douglas’s testimony is the only evidence Plaintiffs have to support their claims and since in their view his testimony should be excluded, they are also entitled to summary judgment on Plaintiffs’ claims. Filing No. 107; Filing No. 111. Because these motions are intertwined, they will be analyzed together. For the reasons stated herein, the Court denies these motions. I. BACKGROUND Plaintiffs are owners of commercial property in Omaha, Nebraska located at 4612 S. 88th Street for which Plaintiff 4612 S. 88th Street LLC is the owner, and 8811 J Street for which Plaintiff OO7 LLC is the owner. Filing No. 27 at 2. The property at 4612 S. 88th Street is a one-story building with six bays encompassing approximately 25,000 square feet. Filing No. 98-1 at 60. The building at 8811 J Street is a one-story building with eight bays consisting of approximately 15,000 square feet. Filing No. 98-1 at 64. Plaintiffs allege that their properties were damaged by wind and/or hail storms that occurred on May 28, 2019, and June 7, 2022, to the extent that they are entitled to replacement cost

coverage for the roofs under insurance policies issued by Defendants. Defendants are insurance companies that issued policy coverage for the plaintiff properties during the periods of time in question. Tri-State provided coverage under Policy No. ADV 3188538 for both properties for the period of November 30, 2018, to November 30, 2019. Filing No. 110-2. The Tri-State Policy specifically excludes coverage for “loss or damage caused by or resulting from,” inter alia, (1) “[w]ear and tear”; and (2) “[r]ust or other corrosion, decay, deterioration, hidden or latent defect or any quality in property that causes it to damage or destroy itself.” Filing No. 110-2 at 113. Auto-Owners provided coverage for the properties pursuant to policy No.

39626269-21 for the period of November 30, 2021, to November 30, 2022. Filing No. 153-4 at 9; 15. The Auto-Owners policy states that they “will not pay for cosmetic damage to roof surfacing caused by wind and/or hail.” Id. at 22–23. That exclusion explains that “cosmetic damage means that the wind and/or hail caused marring, pitting or other superficial damage that altered the appearance of the roof surfacing, but such damage does not prevent the roof from continuing to function as a barrier . . ..” Id. It should be noted that each of the insurance company policies provided coverage for six separate buildings, but only two are currently the subject of this litigation. See Filing No. 110; Filing No. 153-4. Defendants argue that they are not responsible for replacement coverage of the buildings because Plaintiffs cannot definitively show that the damage to the structures was a result of the 2019 and 2022 storms and not the result of regular “wear and tear,” and to some extent whether the purported roof damage was more that “cosmetic.” Auto- Owners also argues that they are entitled to summary judgment because Plaintiffs made

material misrepresentations in their insurance application. Regarding the motions to exclude, Defendants argue that Plaintiffs’ expert, Paul Douglas, a professional engineer, is not a reliable witness because he cannot state without exception which storm caused the damage to the properties. Auto-Owners also request the exclusion of proffered expert Ryan Scribner, who is a general contractor and is offered as an expert to provide a dollar estimate for Plaintiffs’ damages. ANALYSIS I. STANDARD OF REVIEW A. Standard for Motion to Exclude Witnesses

Federal Rule of Evidence 702 governs the admissibility of expert testimony and requires that: (1) the evidence must be based on scientific, technical or other specialized knowledge that is useful to the finder of fact in deciding the ultimate issue of fact; (2) the witness must have sufficient expertise to assist the trier of fact; and (3) the evidence must be reliable or trustworthy. Kudabeck v. Kroger Co., 338 F.3d 856, 859 (8th Cir. 2003). When faced with a proffer of expert testimony, trial judges are charged with the “gatekeeping” responsibility of ensuring that all expert evidence admitted is both relevant and reliable. Kumho Tire Co. v. Carmichael, 526 U.S. 137, 147 (1999); Daubert v. Merrell Dow Pharms., Inc., 509 U.S. 579, 589 (1993). The proponent of expert testimony bears the burden of providing admissibility by a preponderance of the evidence. Lauzon v. Senco Prods., Inc., 270 F.3d 681, 686 (8th Cir. 2001). Testimony is relevant if it is “sufficiently tied to the facts of the case that it will aid the jury in resolving a factual dispute.” Daubert, 509 U.S. at 591. Expert testimony assists the trier of fact when it provides information beyond the common knowledge of the trier

of fact. Kudabeck, 338 F.3d at 860. To satisfy the reliability requirement, the party offering the expert testimony must show by a preponderance of the evidence “that the methodology underlying [the expert’s] conclusions is scientifically valid.” Barrett v. Rhodia, Inc., 606 F.3d 975, 980 (8th Cir. 2010) (citations omitted). In making the reliability determination, the court may consider: (1) whether the theory or technique can be or has been tested; (2) whether the theory or technique has been subjected to peer review or publication; (3) whether the theory or technique has a known or potential error rate and standards controlling the technique’s operations; and (4) whether the theory or technique is generally accepted in the scientific community. Russell v. Whirlpool Corp., 702 F.3d 450, 456 (8th Cir. 2012). Additional factors to consider include: “whether the expertise was developed for litigation or naturally flowed from the expert’s research; whether the proposed expert ruled out other alternative explanations; and whether the proposed expert sufficiently connected the proposed testimony with the facts of the case.” Polski v. Quigley Corp., 538 F.3d 836, 839 (8th Cir. 2008) (quoting Sappington v. Skyjack, Inc., 512 F.3d 440, 449 (8th Cir. 2008)). “This evidentiary inquiry is meant to be flexible and fact specific, and a court should use, adapt, or reject” these factors as the particular case demands. Russell, 702 F.3d at 456 (citation omitted). When making the reliability inquiry, the court should focus on “principles and methodology, not on the conclusions that they generate.” Kuhn v.

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4612 S. 88TH LLC, a Nebraska Limited Liability Company; and OO7, LLC, a Nebraska Limited Liability Company v. TRI-STATE INSURANCE COMPANY OF MINNESOTA, an Iowa Corporation; and AUTO-OWNERS INSURANCE COMPANY, a Michigan Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/4612-s-88th-llc-a-nebraska-limited-liability-company-and-oo7-llc-a-ned-2026.