Illinois State Bar Ass’n Mutual Ins. Co. v. Law Office of Tuzzolino and Terpinas

This case presents question as to whether trial court properly granted plaintiff-insurance company’s motion for summary judgment in action seeking rescission of legal malpractice policy that plaintiff had issued to defendant-law firm, where basis of action was fact that one partner in law firm had failed to notify plaintiff of information regarding potential malpractice claim at time of policy’s renewal. Appellate Court, in reversing trial court, found that common law innocent insured doctrine applied so as to provide coverage for innocent partner of defendant law firm, who was unaware of potential malpractice claim, even though material misrepresentation by other member of law firm was made during formation of policy. Appellate Court also found that severability clause in policy afforded coverage to innocent partner and allowed trial court to rescind coverage for partner with knowledge of potential malpractice claim.