Settlement reached with Tuttle’s insurance companies

Published 4:30 pm Thursday, May 5, 2011

Settlements have been reached with both insurance companies of Albert Lea Abstract Co., the business of former Freeborn County Commissioner Linda Tuttle.

A hearing, however, still has to be scheduled in Freeborn County to determine how much money each claimant will receive.

According to Tuttle’s lawyer, Kenneth R. White, of Mankato, a settlement for $75,000 was reached in mid-April with Tuttle’s insurance company, Cincinnati Specialty Underwriters.

Email newsletter signup

The company had initially denied coverage for any losses following the close of Albert Lea Abstract in June 2010 when Tuttle was arrested.

Cincinnati sought a ruling in U.S. District Court of Minnesota that it would not have to provide legal defenses for Tuttle or her business or to pay for the claims she filed. The company’s lawsuit said the errors and omissions policy only covered claims that happen by mistake, not on purpose.

Tuttle’s response stated that the medication she was on for restless leg syndrome had an impact on her behavior — as the medicine sometimes has a side effect of compulsive gambling. She also questioned the policy language.

White said the majority of the people who had claims against Albert Lea Abstract Co. after the business closed were at the settlement conference. None of them objected to the settlement, he noted.

A $20,000 settlement was also reached with United Fire & Casualty Co., which Albert Lea Abstract had a general liability policy with.

The money reached from the settlements will be deposited into a trust account that White will maintain.

Look to the Tribune for more information about this story as it becomes available.