Insurance Law

Moda Furniture, LLC v. Chicago Title Land Trust Company

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (1st) 140501
Decision Date: 
Monday, June 29, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 1st Div.
Holding: 
Affirmed.
Justice: 
CUNNINGHAM
Appeal from certified question as to interpretation of insurance policy issued by insurer to business that sells rugs and carpets from inventory stored at a leased facility. Landlord hired roof company to replace the roof, and did not notify insured of roof work. During roof removal, carpets were not protected, and carpets were damaged and destroyed from falling debris. Insured company alleged a "Covered Cause of Loss" and a "resulting loss" from that "Covered Cause of Loss", which warrants coverage under exception to policy's faulty workmanship exclusion. Damage to inventory can be seen as a "Covered Cause of Loff", and exception to exclusion applies because roofer's faulty workmanship caused physical damage to inventory, which led to insured's economic injury. Dirt and debris that fell onto inventory can also be viewed as "Covered Cause of Loss", where roofer's faulty workmanship caused falling dirt and roof debris within the premises resulting in damage to inventory.(DELORT and CONNORS, concurring.)

Maryland Casualty Company v. Dough Management Company

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (1st) 141520
Decision Date: 
Tuesday, June 30, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
LIU
Insurer filed declaratory judgment action, seeking declaration that it had no duty to indemnify its insureds in personal injury suit arising from accident on yacht that insureds maintained and used. Injured party was sitting on bench on top deck of yacht, bench tipped backwards, and he fell onto bottom deck, resulting in permanent paralysis; he alleged negligent failure to provide railing on top deck. As underlying complaint alleged only claims directly related to maintenance of yacht, CGL policy's watercraft exclusion applies, and insurer has no duty to indemnify insureds. (NEVILLE and PIERCE, concurring.)

First Chicago Insurance Company v. Molda

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (1st) 140548
Decision Date: 
Friday, June 26, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
GORDON
Court found, after bench trial, that employer's insurer owed a duty to defendant Defendant employee in personal injury suit filed against him and his employer related to auto accident.Defendant was an insured under terms of policy. Evidence at trial supported court's conclusion that insurance agent was insurer's agent for purposes of accepting notice of accident, as insurer encouraged policyholders to report claims to their insurance agent if they wished, and policy documents gave only agent's contact information, and employer's course of dealings involved contacting agent about claims. Court properly found employer's notice of accident, promptly reported to agent, to be timely. (McBRIDE and REYES, concurring.)

Advance Cable Co., LLC v. Cincinnati Ins. Co.

Federal 7th Circuit Court
Civil Court
Insurance
Citation
Case Number: 
Nos. 14-2620 & 14-2748 Cons.
Decision Date: 
June 11, 2015
Federal District: 
W.D. Wisc.
Holding: 
Affirmed
Dist. Ct. did not err in granting plaintiff-insured’s motion for summary judgment in action seeking to require defendant-insurance company to reimburse plaintiff for hail damage to plaintiff’s roof, even though defendant took position that said hail damage was only “cosmetic,” and thus not covered under policy. Policy, which covered any physical loss or damage to roof, covered instant claim, even though damage to roof did not diminish functionality of roof. Moreover, Dist. Ct. did not err in denying portion of plaintiff’s summary judgment seeking damages for alleged bad-faith in defendant's initial refusal to cover instant claim since defendant could have taken reasonable, although mistaken, belief that policy did not cover claims that did not diminish functionality of roof. Fact that defendant’s interpretation of its policy differed from published stance taken by American Association of Insurance Services did not require different result.

Senate Bill 804

Topic: 
Court-security fee
(Haine, D-Alton; Moffitt, R-Galesburg) allows the current court security-fee to exceed $25 for every party in a civil suit if it is set according to an acceptable cost study under the Counties Code. This fee is also added to a plea of guilty or conviction for defendants in traffic, ordinance, and criminal cases. Passed both chambers.

Senate Bill 1833

Topic: 
Personal Information Protection Act
(Biss, D-Skokie; Williams, D-Chicago) will expand the type of information that triggers a breach notification to consumers, including medical information outside of federal privacy laws, biometric data, contact information if combined with identifying information, and login credentials for online accounts. The bill also requires entities holding sensitive information to take “reasonable” steps to protect the information, to post a privacy policy describing their data collection practices, and to notify the Attorney General’s office when breaches occur. Entities will also have to notify the Attorney General’s Office in the event of a breach of geolocation information or consumer marketing information. Passed both chambers.

The County of McLean v. States Self-Insurers Risk Retention Group, Inc.

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (4th) 140628
Decision Date: 
Tuesday, June 2, 2015
District: 
4th Dist.
Division/County: 
McLean Co.
Holding: 
Reversed and remanded.
Justice: 
STEIGMANN
Alan Beaman, whose murder conviction was reversed by Illinois Supreme Court, which concluded that State unlawfully withheld exculpatory evidence, filed suit in federal court against county and county officials for Section 1983 violation and state-law tort claims, including malicious prosecution."Occurrence" of Beaman's "personal injury" within meaning of insurance policy of county and county officials was his arrest and prosecution, not his exoneration. Because Beaman's alleged "personal injury" occurred outside the policy period, court erred in granting summary judgment for county and county officials. (POPE and HOLDER WHITE, concurring.)

Senate Bill 45

Topic: 
Uniform Interstate Depositions and Discovery Act
(Barickman, R-Bloomington; Andersson, R-Geneva) simplifies the procedures to take the deposition of an Illinois person who is subpoenaed for discovery purposes from an out-of-state court. The Act creates establishes a simple, clerical procedure in which a subpoena from an out-of-state court is reissued as a discovery subpoena in Illinois. Passed both chambers.

Centro Medico Panamericano, Ltd v. Laborers' Welfare Fund of the Health and Welfare Department of the Construction and General Laborers' District Council of Chicago and Vicinity

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (1st) 141690
Decision Date: 
Wednesday, May 13, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Affirmed.
Justice: 
LAVIN
(Court opinion corrected 5/28/15.) Court properly granted motion for summary judgment for Defendant (a multiemployer ERISA welfare fund) in insurance coverage dispute. Court properly held that Plaintiff failed to establish prima facie case for promissory estoppel, to support claim that Defendant's service representative made unambiguous promise about extent of insurance coverage. Court properly allowed Defendant's claim director's affidavit as to standard practice of service representatives in responding to calls, even though she was not a party to calls, and as to common business practices in company. (HYMAN and MASON, concurring.)

Senate Bill 884

Topic: 
Venue changes
(Radogno, R-Lemont) makes the following changes to the venue section of the Code of Civil Procedure. (1) Deletes current law that if all defendants are nonresidents of Illinois, and action may be commenced in any county. (2) Makes the residence of an Illinois private corporation or railroad or bridge company and any foreign corporation authorized to transact business in Illinois to be any county in which it is doing business if after due inquiry no other office can be found in Illinois. Any county in which it has a registered office would still be considered to be a county of residence. (3) Deletes current law in which a partnership may be sued in any county in which any partner resides. A partnership may be sued in any county in Illinois in which it is doing business if after due inquiry no office can be found in Illinois. (4) Deletes current law in which an Illinois insurance company or one doing business in Illinois may be brought in any county in which the plaintiff or one of the plaintiffs may reside. (5) Creates a new motion to dismiss for inconvenient venue. It requires the court to dismiss an action in which none of the parties is a resident of Illinois and over which another forum has jurisdiction unless the cause of action primarily arose in Illinois or the interests of justice require that the action proceed in Illinois. Allows the court to award costs and reasonable attorney’s fees in connection with the dismissal. A condition of dismissal is that if the plaintiff elects to file an action in another forum within six months after the dismissal order, the defendant must accept service of process from the court. If the statute of limitations has run in the other forum, the defendant must waive that defense. If the defendant refuses to abide by these conditions, the action shall be reinstated for further proceedings in the court in which the dismissal was granted. If the court in the other forum refuses to accept jurisdiction, the plaintiff may, within 30 days after the final order refusing jurisdiction, reinstate the action in which the dismissal was granted.