Court imposed Rule 137 sanctions against insurer and its coverage counsel. Insurer filed declaratory judgment action, claiming it was not required to provide coverage because its insured willfully failed to cooperate with arbitration hearing. At trial evidence revealed that insured was in jail for unrelated offense at time of arbitration hearing, and thus could not have willfully failed to cooperate with arbitration. Well before scheduled trial, insurer's counsel was informed of possibility that insured had been incarcerated, yet counsel did not serious investigation and failed to bring insured's arrest to trial court's attention. Counsel's conduct was vexatious and unreasonable, which Rule 137 is designed to punish. (HOWSE and BURKE, concurring.)
Illinois Appellate Court
Civil Court
Sanctions