McCann Plumbing, Heating & Cooling, Inc. v. Pekin Insurance Co.

Plaintiffs filed a lawsuit alleging breach of contract and seeking a declaratory judgment relating to the defendant’s denial of coverage for damages incurred to a building owned by the plaintiffs and insured by the defendant. The trial court granted judgment in favor of the defendant finding that the governmental action exclusion contained in the policy precluded coverage and plaintiffs appealed. The appellate court affirmed, finding that the exclusionary language applied to the claim because plaintiff’s building was damaged by the city-ordered demolition of a neighboring building and the policy excluded both direct and indirect damage caused by government action. (HOLDRIDGE and McDADE, concurring)