Illinois Appellate Court
Civil Court
Insurance
Chemical warehouse and shippping company was sued for negligence, for alleged mislabeling of its products. Insurer filed declaratory judgment action after parent company, undertook its own defense after insurer refused to defend it. Court erred in granting summary judgment in insurer's favor, finding that complaint did not allege an "occurrence" as defined by CGL policy. Allegations that company affixed the label on the wrong or improper chemicals, which another company then used in its adhesive products, potentially fall within policy coverage, and insurer has a duty to defend in underlying suit. The alleged mislabeling, and the result thereof, were unexpected, and thus an "accident", falling within an "occurrence" under the policy. (KARNEZIS and CONNORS, concurring.)