Illinois Appellate Court
Civil Court
Insurance
Homeowners sought rescission of real estate contract or compensatory damages due to extensive water infiltration and flooding in basement after purchase, and sued sellers of home for negligent misrepresentation in disclosure report. Sellers tendered defense to their family liability policy. Complaint alleged property damage and bodily injury as result of occurrence at least potentially covered by policy, and thus insurer had duty to defend sellers in underlying suit. Remedy sought was not contract based, and thus contract exclusion is inapplicable. (McLAREN and HUDSON, concurring.)