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

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