Business Interruption Coverage Barred by Virus Exclusion The United States District Court for the Northern District of Illinois, in an opinion by Judge Kocoras, applying Illinois law, dismissed with prejudice Plaintiffs’ suit against West Bend Mutual Insurance Company (“West Bend”) seeking coverage for business interruption losses stemming from the COVID-19 pandemic. The court found that the underlying policy’s “Virus Exclusion”... Read More

Policyholder has Burden to Prove Exception to Exclusion Applies The Illinois Appellate Court for the Fifth District, on an issue of first impression, in an opinion written by Justice Boie with Justices Cates and Moore concurring, applying Illinois law, affirmed the decision of the circuit court holding that it is the insured’s burden to prove that its claim falls within... Read More

“Mechanical Device” Exclusion Bars Coverage for Grain Auger Accident The Supreme Court of Illinois, in an opinion written by Justice Michael Burke with Chief Justice Anne Burke and Justices Garman, Karmeier, Theis, and Neville concurring reversed the appellate court and affirmed the circuit court’s finding of summary judgment for State Farm Insurance Company (“State Farm”) finding that the “mechanical device”... Read More

Amazon Not a Seller When Third-Party Sellers Involved The Ninth Circuit, applying Arizona law, affirmed the District Court’s ruling of summary judgment in favor of Amazon.com, Inc. and Amazon.com (jointly, “Amazon”) regarding State Farm Fire and Casualty Co.’s (“State Farm”) subrogation claims for strict liability and negligence.  The Ninth Circuit held Amazon is not a seller of products sold on... Read More

Report to Police 11 Days after Accident is “as Soon as Practicable” The Illinois Appellate Court for the First District, in an opinion written by Justice Lampkin with Justice Burke concurring and Justice Gordon concurring in part and dissenting in part, applying Illinois law, reversed the Circuit Court’s ruling and held that the relevant insurance policy only required an insured... Read More

Manufacturers Not Liable for Failure to Warn About the Dangers of Post-Sale Asbestos-Containing Materials  The Supreme Court of Tennessee, in an opinion written by Judge Page in which Chief Judge Bivins, Judge Clark, and Judge Kirby joined, applying Tennessee law, held in a products liability action stemming from occupational exposure to asbestos that the manufacturers of certain equipment (the “Equipment... Read More

Closure due to Governor’s Orders Not “Direct Physical Loss” The United State District Court for the Northern District of Illinois, in memorandum and order written by Judge Harry D. Leinenweber, applying Illinois law, granted The Cincinnati Insurance Company’s (“Cincinnati”) motion to dismiss plaintiff, T & E Chicago LLC’s (“T & E”), four-count putative class action complaint. The court found that... Read More

Broad Exclusion Applies Even to Claims Regarding Sale Through Intermediary The 1st District Appellate Court of Illinois, in an opinion by Justice Gordon, affirmed the trial court’s grant of summary judgement for The Hanover Insurance Company (“Hanover”) against its insureds, holding that Hanover did not have a duty to defend due to a broad “Products and Services Liability” exclusion in... Read More