TKK USA, Inc. v. Safety National Casualty Co.

Dist. Ct. did not err in granting plaintiff-insured’s motion for summary judgment in action seeking declaration that defendant’s policy covered excess losses resulting from liability imposed on plaintiff for losses under “Workers’ Compensation or Employers’ Liability laws,” where plaintiff was sued in underlying common law action alleging negligence that resulted in death of insured’s employee, who had contracted mesothelioma. Underlying lawsuit fell within “Employers’ Liability Laws” language of policy since it pertained to alleged workplace injury or disease, and fact that plaintiff had available affirmative defense to said lawsuit under Ill. Workers’ Occupational Disease Act did not affect coverage under policy. Dist. Ct. also did not err in denying plaintiff’s motion for sanctions under section 155 of Illinois Insurance Code, where defendant took reasonable position on unsettled issue of law.