No Business Income Coverage for Art Gallery and Dealership The United States Court of Appeals for the Second Circuit, applying New York law, affirmed the District Court’s dismissal of a claim for coverage made by a brick-and-mortar art gallery and dealership, holding that the art gallery suffered no direct physical harm as a result of New York’s statewide shutdown orders... Read More

The United States Court of Appeals for the Seventh Circuit, applying Illinois law, joined four other U.S. circuits in dismissing various insureds’ claim for coverage for losses stemming from the COVID-19 pandemic. In doing so, the Seventh Circuit held that the plaintiffs failed to adequately allege physical damage or loss caused by the coronavirus and that several exclusions, discussed... Read More

The United States District Court for the Northern District of Illinois, Eastern Division, in an opinion written by Judge Leinenweber, applying Illinois law, granted American Family Mutual Insurance Company’s (“American”) motion for summary judgment, holding that the insurer owed no coverage to the insured for alleged violations of the Illinois Biometric Information Privacy Act (“BIPA”). The insured, the operator... Read More

Insurer Requirement of Evidence of Functional Limitations Reasonable in Determining Applicability of Self-Reported Symptoms Limitation The United States Court of Appeals for the First Circuit, applying federal law, affirmed the district court’s grant of summary judgment to the insurer Unum Life Insurance Company of America (“Unum”), finding that its application of a plan’s self-reported symptoms (“SRS”) benefit limitation when faced... Read More

Negligence Claims Remain in State Court Despite Nursing Homes’ Defense Based on Federal PREP Act The United States Court of Appeals for the Third Circuit, applying federal law, affirmed the district court’s dismissal of negligence and wrongful-death claims for lack of subject-matter jurisdiction, remanding the cases back to state court. The negligence and wrongful death complaints stemmed from the deaths... Read More

SOL Tolled Until Discovery Due to Broker Misrepresentations The Illinois Appellate Court for the First District, in an opinion written by Justice Walker, applying Illinois law, reversed the trial court’s dismissal of an insured’s, 2837-55 Irving Park, LLC (“Irving Park”), complaint as untimely, holding instead that Irving Park’s complaint adequately stated facts bringing it within the time allowed by the... Read More

Settlement Payments for Allegations of Fraud Insurable under Excess Policy The United States District Court for the Northern District of Illinois, in an opinion written by Judge Valderrama, applying Illinois law, granted the insureds’, Astellas US Holding, Inc. and Astellas US Pharma, Inc. (collectively “Astellas”), motion for summary judgment against their excess insurer, Federal Insurance Company (“Federal”), holding that Federal... Read More

The United States District Court for the Eastern District of Wisconsin, applying Wisconsin law, dismissed the insured Eaton Corporation’s (“Eaton”) claim for declaratory judgment against three high-level excess insurers for lack of jurisdiction, holding that Eaton’s claims were not ripe, and thus, did not present a justiciable controversy. The three insurers—Independent Specialty Insurance Company, Fireman’s Fund Insurance Company, and Travelers... Read More

Recording and Distribution of Material or Information Exclusion Applies to IL BIPA Violations The United States District Court for the Middle District of North Carolina, applying North Carolina law, granted the insurers’ motion for judgment on the pleadings, holding that the insurers had no duty to defend the insured against alleged violations of the Illinois Biometric Information Privacy Act (BIPA)... Read More

State Employee Health Plan Waived Sovereign Immunity The United States Court of Appeals for the Fourth Circuit, applying federal law, denied a motion to dismiss from the defendant North Carolina State Health Plan for Teachers and State Employees (NCSHP), holding instead that NCSHP waived its state sovereign immunity by accepting federal financial assistance. As a result, the plaintiffs, who are... Read More