Section 155 is a Fee-Shifting Provision – Not a Stand-Alone Cause of Action The Appellate Court of Illinois for the First District, in an opinion by Justice Van Tine applying Illinois law, affirmed the trial court’s holding that the plaintiff, Moles, was not entitled to relief for bad faith under section 155 of the Illinois Insurance Code because she did... Read More
Trump Towers Discharges Into Chicago River Not an “Occurrence” The Appellate Court of Illinois for the First District, in an opinion by Justice Reyes and applying Illinois law, affirmed a finding that insurers of Chicago’s Trump International Hotel & Tower (“Trump Hotel & Tower”) had no duty to defend or indemnify the hotel in an underlying lawsuit alleging the hotel’s... Read More
No Coverage for Faulty Workmanship on Fracking Wells The Third Circuit, applying Pennsylvania law, held that an insurer did not have to indemnify its insured for its allegedly faulty fracking services. Ultimately, the court determined that the damage the insured caused in conducting its fracking services did not constitute an “occurrence.” In the underlying suit, U.S. Energy Development Corporation (“U.S. Energy”)... Read More
Factual Issues Related to Ten Month Delay in Providing Notice Preclude Summary Judgment in BIPA Coverage Case The District Court for the Northern District of Illinois, in an opinion by Judge Alonso applying Illinois law, considered whether Citizens Insurance Company of America (“Citizens”) had a duty to defend Mullins Food Products, Inc. (“Mullins”) in an underlying lawsuit alleging violations of... Read More
Is BIPA the Proverbial “Next Big Thing”? Plaintiffs’ lawyers are always on the lookout for “the next big thing.” It may be here. In 2008, Illinois became the first state to enact a biometric privacy law that prohibits private companies from collecting, capturing, purchasing, receiving through trade, or otherwise obtaining a person’s biometric information without informing and receiving written consent.... Read More
In May 2021, the Illinois Supreme Court ruled on the seminal Illinois insurance coverage case for underlying actions alleging violations of the Illinois Biometric Information Privacy Act 740 ILCS 14/1 et seq. (West 2018) (“BIPA”), West Bend Mut. Ins. Co. v. Krishna Schaumburg Tan, Inc., 2021 IL 125978. It held West Bend had a duty to defend because the... Read More
“Catch-All” Statutory Violation Exclusion Ambiguous The Seventh Circuit, in an opinion by Judge Rovner, applying Illinois law, affirmed the district court’s judgment on the pleadings holding that an insurer had a duty to defend two class action lawsuits alleging violations of the Illinois Biometric Information Privacy Act (“BIPA”). The court determined the language of the catch-all provision of the statutory... Read More
Exclusions Not Applicable to Bar Personal and Advertising Coverage The United States District Court for the Northern District of Illinois, in an opinion by Judge Alonso, applying Illinois law, denied an insurer’s motion for judgment on the pleadings, holding that Continental Western Insurance Company (“Continental”) had a duty to defend its insured, Tony’s Finer Foods Enterprises (“Tony’s”), in an underlying... Read More
Inability to Muster Majority Leaves Appellate Ruling Permitting Assignment Stand In a per curiam decision, the Supreme Court of Wisconsin affirmed the appellate court’s decision that the anti-assignment clause in the insurer’s policies did not prohibit the post-loss assignment of insurance rights. The ruling of the appellate court stands because no three justices could reach an agreement to either affirm,... Read More
Losses Not Covered as Physical Loss or Damage The Seventh Circuit, in an opinion by Judge Scudder, applying Wisconsin law, affirmed the district court’s holding that a Wisconsin healthcare system failed to state a claim for coverage beyond the $1 million it received under an additional coverage provision for communicable disease response for its COVID-19 losses. The insured, Froedtert Health... Read More
