Plaintiff insurer sought a declaration that it did not owe a duty to defend its insured, a nightclub, for an incident that occurred in the nightclub parking lot that resulted in the death of one patron and the injury of another patron who were attacked by patrons who had been removed from the nightclub and returned with handguns. Policy endorsements are unambiguous in exclusion of coverage for any claim arising out of an assault and battery or any claim arising out of use or misuse of a firearm. Insurer had no duty to defend because allegations in complaint do not even potentially fall within the policy’s coverage. Although estoppel may bar insurer from relying on policy defenses such as an insured’s late notice of the claim, it cannot create coverage where no coverage would otherwise exist. (CUNNINGHAM and HARRIS, concurring.)
Illinois Appellate Court
Civil Court
Insurance