Plaintiffs, after suffering losses associated with a sewage backup at their residence, filed a lawsuit naming as defendants their homeowners insurer, insurance agent, and the company that performed work to remediate damage to plaintiffs’ residence. Plaintiffs alleged that the insurance company owed coverage for damage causes by “aerosolized” sewage bacteria and that the remediation company did not adequately perform the remediation work. The trial court dismissed some claims and on the breach of contract claim found that the insurance coverage was limited under the policy. Plaintiff appealed from the trial court’s determination that the insurance coverage was limited to $5,000 for the aerosolized sewage bacteria as well as the dismissal of their other claims. The appellate court reversed the determination as to the breach of contract claim, finding that plaintiffs might be able to prove they are entitled to additional coverage for direct physical losses. The appellate court also reversed dismissal of plaintiffs’ Consumer Fraud Act and negligence claims against the remediation company. The appellate court affirmed the remaining trial court orders. (C.A. WALKER and HYMAN, concurring)
Illinois Appellate Court
Civil Court
Insurance Coverage