The Illinois Supreme Court considered whether the plaintiff, a mutual insurance company, had a duty to defend the defendant, an additional insured, under a subcontractor’s commercial general liability policy in connection with an underlying lawsuit brought by a townhome owners’ association for breach of contract and breach of implied warranty of habitability. The supreme court found that the allegations contained in the underlying lawsuit sufficiently fell within the initial grant of coverage requirement that there be “property damage” caused by an “occurrence” and affirmed the judgment of the appellate court which reversed a trial court order in favor of the insurance company. However, the supreme court remanded for a determination of whether any exclusions contained in the policy would bar coverage. (NEVILLE, OVERSTREET, HOLDER WHITE, CUNNINGHAM, ROCHFORD, and O’BRIEN, concurring)
Illinois Supreme Court
Civil Court
Insurance Coverage