Illinois Municipal League Risk Management Association v. The City of Genoa

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2016 Il App (4th) 150550
Decision Date: 
Tuesday, April 12, 2016
District: 
4th Dist.
Division/County: 
Sangamon Co.
Holding: 
Reversed and remanded.
Justice: 
POPE

Court erred in finding Illinois Municipal League Risk Management Association had no duty to defend or indemnify City in underlying suit filed against it by Regional Transportation Authority (RTA). RTA alleged its claim against City arose from a "tax kickback scheme" between City and Oil Company, seeking statutory remedies per Section 8-11-21 of Municipal Code and damages and equitable relief, seeking compensation by City for sales tax proceeds it claims it should have received but were never collected by Oil Company. Policy exclusion for the issuance, collection, or management of tax proceeds  does not apply, as RTA is asking City to make RTA whole for taxes never collected by Company. (HARRIS and APPLETON, concurring.)