Landmark American Ins. Co. v. Deerfield Construction, Ins.

Federal 7th Circuit Court
Civil Court
Insurance
Citation
Case Number: 
No. 18-2205
Decision Date: 
August 12, 2019
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in granting plaintiff-insurance company’s motion for summary judgment in plaintiff’s claim seeking declaration that plaintiff’s excess insurance policy did not cover accident at issue in underlying lawsuit, where: (1) although defendant-insured notified its primary insurance company about said accident and tendered defense of underlying lawsuit to primary insurance company, defendant waited seven years until eve of trial in underlying lawsuit to notify plaintiff that its excess policy might be implicated in underlying lawsuit if jury’s verdict surpassed $1 million insurance provided by primary policy; and (2) jury awarded plaintiff in underlying lawsuit $2.3 million. Dist. Ct. could properly find that instant seven-year delay in notifying plaintiff about accident was too long, where plaintiff’s excess policy had clause making coverage contingent on proper and timely notice of accident. Ct. also rejected defendant’s argument that plaintiff was equitably stopped from asserting any lack of notice clause, even though plaintiff played passive role at trial in underlying action, where plaintiff did not inform defendant at any point that it was not going to stand on its rights for timely notice under excess policy.