StarNet Ins. Co. v. Ruprecht

Federal 7th Circuit Court
Civil Court
Insurance
Citation
Case Number: 
No. 20-1192
Decision Date: 
June 28, 2021
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed

Dist. Ct. did not err in entering judgment on pleadings in favor of plaintiff-insurance company on action seeking declaration that terms of workers’ compensation and employer’s liability policies it issued to insured-subcontractor, which performed services at construction site, obligated plaintiff to pay nothing more for workplace injury than amounts Ill. workers’ compensation law required subcontractor to pay its injured employee. Record showed that under Ill. Workers’ Compensation Act, subcontractor’s liability to one defendant-employee’s estate was $5,993.91 and its liability to second defendant-employee was $25,229.15, but that subcontractor waived instant Kotecki caps, where subcontractor, in separate agreement with general contractor, agreed to indemnify general contractor and hold it harmless for any injuries arising out of subcontractor’s work at construction site. However, policy issued by plaintiff contained exclusion that provided that insurance did not cover subcontractor’s instant waiver of right to limit its liability for contribution to amounts of benefits payable under Workers’ Compensation Act. As such, policy did not cover general contractor’s contribution claim against subcontractor, even though general contractor had settled for amount in excess of $75,000 with injured employees, and thus plaintiff was only required to pay amounts set forth under Workers’ Compensation Act. Fact that subcontractor’s agreement with general contractor called for subcontractor to perform work in workmanlike manner did not require different result, since general contractor’s contribution claim was based on subcontractor’s pro rata share of liability in tort (as opposed to liability based on breach of warranty) for instant workplace accident.