(Court opinion corrected 1/21/21.) Plaintiff filed suit against its insurance companies, involving 2 underlying suits in which Plaintiff was sued and tendered defense of suit to Travelers. Plaintiff alleged in 1st underlying suit that Travelers breached its duty to defend it in a suit in federal court in Oklahoma, and sought relief under Section 155 of the Insurance Code. In 2nd underlying suit (filed in Cook County Circuit Court), Plaintiff alleged breach of contract, violation of 155 of Insurance Code, and violation of Consumer Fraud Act by Travelers. The fact that there was for some time a dispute about the insurers' respective obligations is not a breach of contract by Travelers. Court properly dismissed count alleging breach of contract. Section 155 of Insurance Code does not apply, as Travelers had no contractual duty to tender its policy limits to other insurer prior to appeal, and thus it cannot be punished for vexatious and unreasonable delay in doing so. Thus, court properly dismissed Section 155 count. As no conflict of interest existed between Travelers and Plaintiff, any alleged misrepresentation or omission by Travelers to Plaintiff as to the existence of a conflict of interest cannot be a deceptive act or practice under Consumer Fraud Act. Court properly dismissed Consumer Fraud Act count. (LAVIN and PUCINSKI, concurring.)
Illinois Appellate Court
Civil Court
Consumer Fraud Act