Eighth Circuit rules in Arkansas tornado suit
A tornado leveled a warehouse in Springdale and triggered a lawsuit about insurance limits and contract terms. Fort Worth Partners rented the 200,000 square foot building to Nilfisk and required the tenant to buy coverage equal to full replacement value. The structure was appraised between 10.5 million dollars and 11.1 million dollars, but Nilfisk carried just 5.1 million dollars in protection when the storm hit on March 30, 2022.
The landlord sued for breach of contract after receiving insurance payments that fell short of rebuilding costs. Expert witnesses gave replacement estimates from 9.4 million dollars to 27.7 million dollars. A district court ruled Nilfisk violated lease terms and awarded damages for demolition, construction, and lost income but excluded foundation expenses.
The Eighth Circuit upheld most findings on Oct. 17, 2025. Judges agreed each inadequate policy was a separate breach and confirmed the lease barred recovery for below-grade structures. The appeals court sent one portion back for more review of certain cost calculations.
