$3.5M “Pill Mill” settlement fully covered as focus of underlying allegations was negligent “bodily injury” The District Court for the Central District of Illinois Springfield Division, in an opinion by Judge Richard Mills, applying Illinois law, held that Cincinnati Insurance Company (“Cincinnati”) is obligated to indemnify a drug wholesaler for a $3.5M settlement with the State of West Virginia.  Amongst... Read More

NHL trademark case – 16 month delay untimely despite insurer paying 1/3 defense expenses – waiver must be intentional The District Court for the Northern District of Illinois, in an opinion written by Judge Elaine E. Bucklo, applying New York law, ruled that an insurance company is not obligated to pay the remaining two-thirds of its insured’s defense costs in... Read More

Professional liability policy “arising out of” breach of contract exclusion renders E & O coverage illusory The Seventh Circuit (Judges Bauer, Rovner, and Hamilton), applying Wisconsin law, reversed the district court’s ruling that had held professional liability coverage in an Errors & Omissions (“E&O”) policy was not rendered illusory when read with breach of contract exclusion endorsement because the professional... Read More

Hoke LLC secures ruling as matter of first impression that continuous trigger and pro rata allocation with unavailability rule and inapplicability of pollution exclusion for products claims as law of CT. In a unanimous decision, the Connecticut Supreme Court, applying Connecticut law, affirmed and adopted the Appellate Court’s ruling applying continuous trigger, with pro rata allocation of defense and indemnity... Read More

Legal Costs for Criminal Defense of Pollution Claims Not “Clean-up Costs” The District Court for the Southern District of Texas, applying Texas law, held that an insurer had no duty to indemnify its policyholder under a pollution liability policy for legal fees incurred in a criminal matter stemming from pollution.  No environmental laws required the policyholder to incur criminal defense... Read More

Two Class Actions About Impropriety in Performing Probation Services Are Not “Related” The Superior Court of the State of Delaware, applying Delaware law, held that two class actions alleging impropriety regarding the collection of fees from probationers were not “related” for purposes of a “Prior Acts or Prior Notice” exclusion. Providence Service Corporation (“Providence”) owns Pathways Community Corrections, Inc. (“PCC”).  PCC... Read More

Setoffs Permitted Against Arbitration Award The Illinois First District Appellate Court, in an opinion written by Justice Lavin with Justices Mason and Hyman concurring, affirmed the circuit court’s ruling that underinsured motorist coverage can be set-off by amounts recovered by the insured from the underinsured motorists and other available insurance. Joseph Gean was involved in a collision with a driver that... Read More

Decedent Potentially “Related by Marriage Insured” Under Former Stepmother’s Auto Policy The Illinois Fifth District Appellate Court (Justices Overstreet, Cates and Moore), applying Illinois law, held an individual who died in an auto accident was potentially entitled to medical and uninsured motorist coverage under his former stepmother’s auto policies, because the “related by marriage” requirement to be an insured was... Read More

Notice of Events That May Become a Claim Not Enough to Trigger Coverage The Eleventh Circuit, applying Florida law, affirmed the District Court’s grant of an insurer’s motion for summary judgment due to the policyholder’s failure to provide notice of a “Claim” within the policy period or discovery period of the claims-made Executive and Organization Liability Insurance policy. After obtaining an... Read More