Xtreme Protection Services, LLC v. Steadfast Insurance Co.

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2019 IL App (1st) 181501
Decision Date: 
Friday, May 3, 2019
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div,
Holding: 
Affirmed.
Justice: 
HARRIS

Plaintiff filed complaint alleging assault and intentional infliction of emotional distress alleging that Defendant placed listening devices in his office, attached GPS devices to his vehicles, and sent harassing text messages. Court properly held that Defendant had the right to select an independent attorney to defend it in the underlying action due to a conflict of interest with its insurer. Insurer's explicit waiver of its right to deny coverage for compensatory damages based on acts alleged resolved one type of conflict, but its continuing reservation of its right to deny coverage for punitive damages presents another area of potential conflict, as complaint seeks a substantially greater amount of punitive damages than compensatory damages. Insurer has not shown how it was actually hampered in its defense and thus cannot deny coverage by claiming breach of cooperation clause. (CUNNINGHAM and CONNORS, concurring.)