American Safety Casualty Ins. Co. v. City of Waukegan

Dist. Ct. did not err in finding that insurance policy issued by plaintiff provided coverage in successful section 1983 action alleging malicious prosecution against defendant-insured where Dist. Ct. found that relevant date for purpose of coverage was 2002 when underlying plaintiff in section 1983 action was exonerated from criminal charges that formed basis of malicious prosecution claim. While instant plaintiff argued that coverage under other third-party insurance policy was operative since that policy was in effect in 1989 and 1990 when actual prosecution occurred, Ct. found that "occurrence" for purposes of coverage was date of exoneration since exoneration formed final element of malicious prosecution claim. Moreover, Dist. Ct. did not err in imposing under 215 ILCS 5/155 damages against plaintiff as part of defendant's counterclaim for vexatious refusal to defend defendant in underlying section 1983 action or to seek declaration as to coverage prior to trial in said action.