Reservation of rights on punitive damages does not create Peppers conflict. An Illinois appellate court in the first district, applying Illinois law, affirmed the trial court’s ruling and held that an insured was not entitled to reimbursement for the fees of its independent counsel, because no conflict of interest existed regarding the defense of the underlying copyright infringement case that... Read More

Pella entitled to defense reimbursement for property damage when evidence demonstrates the potential for coverage. An Iowa federal court, applying Iowa law, entered summary judgment in favor of window maker regarding during which policy period defense costs coverage was triggered.  The court held that the policy period in which the windows were installed was triggered, because there was potential property... Read More

John Crane fails at trial to prove exhaustion of its primary coverage. Appeal filed. Following a 23 day trial, on December 28, 2017, Judge Moshe Jacobius, of the Cook County Chancery Division, issued a 140 page opinion addressing the issue of whether John Crane Inc. (“Crane”) had exhausted all of its primary coverage and was thus entitled to access its... Read More

Summary judgment for “knowing misrepresentation” regarding late notice claim A Delaware state court judge found Homeland Insurance Co. of New York (“Homeland”) liable for bad faith for its actions in denying a claim by its policyholder CorVel Corp. (“CorVel”) and ordered Homeland to pay damages and penalties in the amount of $13.5M. In the underlying class action arbitration brought in... Read More

“Claims in Process” exclusion applies because contamination first occurred prior to policy inception The Seventh Circuit, applying Indiana law, affirmed the district court’s ruling and held that there was no coverage for property damage arising out of pollutants leaking from underground storage tanks due to a “Claims in Process” exclusion in the relevant policies.  The Seventh Circuit confirmed the trial... Read More

No coverage because exception to IP exclusion not applicable due to inclusion of trademark and copyright claims An Illinois federal district court, applying Illinois law, held that an intellectual property exclusion relieved an insurer of its defense obligations for an underlying suit regarding trademark infringement and unfair competition, because the exclusion clearly excluded coverage for entire suits that allege intellectual... Read More

Affirms summary judgment to insurer in grain silo explosion case The Seventh Circuit affirmed a trial court ruling that policyholder West Side Salvage Inc. (“West Side”) was not entitled to seek bad faith damages from RSUI Indemnity Co. (“RSUI”) for its alleged failure to properly protect its interests by settling an underlying claim against it.  West Side was contracted to... Read More

Travelers required to provide coverage despite missing policies in pollution case An Illinois appellate court (1st Dist.), applying Illinois law, upheld the circuit court’s ruling that an insured proved by a preponderance of evidence the material terms and conditions of several years of missing comprehensive general liability (“CGL”) and auto policies. Rogers Cartage Company (“Rogers”), a trucking company that hauls bulk... Read More

“Logical extension of Waste Management Common-Interest exception” to privilege waiver An Illinois appellate court, applying Illinois law, held that co-defendants in a case who agree to share information pursuant to their common interest in defeating their litigation opponent do not waive either their attorney-client or work-product privilege. A purported class action lawsuit was filed against State Farm Mutual Auto Insurance Company... Read More