American Service Insurance Co. v. City of Chicago 

Illinois Appellate Court
Civil Court
Administrative Law
Citation
Case Number: 
No. 1-09-1693
Decision Date: 
Friday, September 17, 2010
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Reversed and remanded.
Justice: 
ROBERT E. GORDON
(Court opinion corrected 10/14/10.) Suit filed by insurers to defeat any liability by them for coverage for administrative judgments against their insureds in administrative actions filed by City of Chicago. Insurer which obtained default orders against policyholder defendants still has standing to pursue the policyholders' claims, as no final declaratory judgment has been entered by trial court. A default order is no guarantee of ultimate success, so a plaintiff is permitted to pursue alternate theories of recovery until a final judgment is secured. Default judgment did not render insurer's claims moot, as public interest exception applies, because the pertinent issue, whether a municipality can pursue damages for motor vehicle accidents in an administrative proceeding, is a public question. (CAHILL and McBRIDE, concurring.)