Malicious Prosecution “Occurrence” When Wrongful Conduct Happened, Not Exoneration (Reversal) The Illinois Supreme Court, in a unanimous opinion, found that coverage for malicious prosecution is not triggered by exoneration. Thus, the insurers at the time of the exoneration had no obligation to fund the remaining $10 million of a settlement for a malicious prosecution suit brought by a man who... Read More

 Insurer Sanctioned Because Reasons for Rescission Unrelated to Claim  The First District Appellate Court, in an opinion written by Justice Howse with Justices Ellis and Cobbs concurring, upheld the judgment of the Circuit Court awarding bad faith damages against an insurer for its vexatious and unreasonable conduct in denying coverage and rescinding an auto policy. The Appellate Court found that... Read More

Insurer Ordered to Pay $2.8M in Bad Faith Damages  The United States District Court for the Northern District of Illinois, in an opinion by Judge Charles P. Kocoras, applying Illinois law, ordered an insurer to pay $2.8 million in bad faith damages for seven years of defense and other expenses incurred by its insured in defending an underlying suit and... Read More

Time of “Occurrence” Inferred from Complaint    The Illinois Appellate Court’s First District, in an opinion written by Justice Cobbs with Justices McBride and Howse concurring, upheld a lower court judgement on the pleadings in a declaratory judgement action filed by Liberty Mutual Fire Insurance Company and Liberty Insurance Corporation (“Liberty”) against its insured, Ferrara Candy Co. The Appellate Court held... Read More

Attorney-Client Privilege Common Interest Exception Not Applied in Broker Dispute  The Illinois Supreme Court, in an opinion written by Justice Thomas with Justices Kilbride, Garman, Karmeier, Theis, and Neville concurring, reversed the Appellate Court and held that under Illinois law the “common-interest” exception to the attorney-client privilege does not apply in circumstances where there is no insured-insurer relationship between parties... Read More

“Mechanical device” exception too vague to apply to auger accident –  matter of first impression in IL The Illinois Fifth District Appellate Court, on a matter of first impression in Illinois, in an opinion written by Justice Cates with Justice Chapman concurring, concluded that a “mechanical device” exclusion in an auto policy covering a grain truck was overly broad and... Read More

Livery driver walking passenger to door may count as “use” of vehicle The Illinois First District Appellate Court, in an opinion written by Justice Harris (Justices Mikva and Connors concurring), applying Illinois law, found that injuries sustained during the escort of a passenger from a livery vehicle to the door of the passenger’s destination may be found to arise out... Read More

Landlord-tenant class action not barred by deceptive business practices exclusion in professional liability policy The Illinois First District Appellate Court (Judges Griffin, Hyman, and Walker), applying Illinois law, held that a class action alleging violations of the Chicago Landlord Tenant Ordinance did not fall within an exclusion in a professional liability policy that barred coverage for claims arising out of... Read More

$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