Plaintiff, a restaurant tenant in commercial building, and the building owner, purchased insurance policies from Defendant insurer. The building partially collapsed, and Plaintiff submitted insurance claims for loss of building and for lost business income. Jury found that Defendant had breached insurance contracts, and after bench trial on Section 155 (of Insurance Code) claims, court entered judgment for Plaintiff. Court did not abuse its discretion in finding that Defendant had engaged in unreasonable and vexatious delay in settling the claims and was worthy of sanctions under Section 155. An insurer owes a duty of good faith and fair dealing to provide a damage estimate so insured can proceed knowing scope of coverage.(BIRKETT, concurring; McLAREN, specially concurring.)
Illinois Appellate Court
Civil Court
Insurance