Universal Underwriters Insurance v. LKQ Smart Parts

Insurer filed declaratory judgment action, seeking declaration that its liability insurance policy did not cover spoliation of evidence claim brought against its insured and another insurer, arising out of passenger's death in single-car rollover accident. Car was destroyed while at insured's salvage yard. Insured describes destruction of car, and the plaintiff's resulting inability to use it in underlying suit, as the "loss" under the policy, and thus damages Plaintiff seeks are damages resulting from destruction of car and loss of use of it. Policy requires only that loss to covered vehicle must occur, and does not require that vehicle owner must file suit. No conflict between Wisconsin and Illinois law as to interpretation of policy, and thus Illinois law is applied as law of forum. (McBRIDE and HOWSE, concurring.)