Insurance Law

State Farm Mutual Automobile Insurance Company v. Benedetto

State Farm Mutual Automobile Insurance Company v. Benedetto
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (1st) 141521
Decision Date: 
Wednesday, May 6, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Reversed and remanded.
Justice: 
LAVIN
Insured and his wife were riding motorcycle when unidentified, passing semi crossed over into his lane of travel. Insured swerved and avoided physical contact with semi, but was propelled off road by wind shear of passing semi, onto gravel shoulder and into ditch, where they were thrown from motorcycle and injured. Wind shear does not constitute physical contact under uninsured motorist provision of policy. To collect uninsured motorist coverage there must be actual physical contact with hit-and-run vehicle, or accident occurred as result of chain of events where hit-and-run vehicle struck intermediate vehicle. (PUCINSKI and HYMAN, concurring.)

Cincinnati Insurance Company v. Pritchett

Cincinnati Insurance Company v. Pritchett
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (3d) 130809
Decision Date: 
Monday, April 27, 2015
District: 
3d Dist.
Division/County: 
Will Co.
Holding: 
Certified question answered; remanded.
Justice: 
HOLDRIDGE
(Court opinion corrected 5/4/15.) Insurer filed declaratory judgment action seeking declaration that it has no obligation to arbitrate insured's claim for bodily injury and other claims arising from single-car accident.Policy language is ambiguous as it does not clearly require physical contact between insured vehicle and another vehicle, either directly or through continuous chain of events, for coverage to exist. Policy language is ambiguous as to necessity of physical contact between insured vehicle and either hit-and-run vehicle or object caused by hit-and-run vehicle to make contact with insured vehicle through continuous sequence of events. (CARTER and O'BRIEN, concurring.)

Illinois Founders Insurance Company v. Williams

Illinois Founders Insurance Company v. Williams
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (1st) 122481
Decision Date: 
Thursday, April 16, 2015
District: 
1st
Division/County: 
Cook Co.
Holding: 
Affirmed.
Justice: 
ELLIS
Court did not err in granting summary judgment for insurer on counterclaim for attorney fees and costs pursuant to Section 155 of Illinois Insurance Code, as insurer had a bona fide dispute as to its coverage of Defendant's hit-and-run claim, and as Defendant provided insufficient record to support her other contentions. Insurer did not act vexatiously or unreasonably in contesting hit-and-run claim, as there was competent evidence of a single-car collision as well as evidence of a hit-and-run scenario. Insurer's actions in obtaining default judgment in its favor were grounded in its litigation of bona fide claim. The fact that court ultimately found that insurer was required to cover accident does not render insurer's declaratory judgment suit vexatious or unreasonable. (HOWSE and COBBS, concurring.)

State Farm Mutual Automobile Insurance Co. v. Progressive Northern Insurance Co.

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (1st) 140447
Decision Date: 
Friday, March 27, 2015
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed.
Justice: 
GORDON
(Court opinion corrected 4/10/15.) Plaintiff insurer filed declaratory judgment action seeking declaration that its underinsured motorist coverage did not cover policyholder's son for injuries sustained in car accident while attending college in Colorado. Insurer provided 3 auto insurance policies: two to student's father and one to stepmother. Student is covered under policies as "a child away at school". Student did not lose coverage when he registered to vote in Colorado and obtained Colorado driver's license, as policy does not state exclusion will occur in such cases. As student is not a party to contract, his intent as to whether to return to Illinois is not an issue. (McBRIDE and REYES, concurring.)

Bituminous Casualty Corporation v. Plano Molding Company

Bituminous Casualty Corporation v. Plano Molding Company
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2015 IL App (2d) 140292
Decision Date: 
Thursday, March 26, 2015
District: 
2d Dist.
Division/County: 
Kendall Co.
Holding: 
Reversed.
Justice: 
ZENOFF
Plaintiff insured Defendant manufacturer of storage molds under CGL policy. After train derailment, allegedly caused by molds breaking through floor of container and falling onto tracks, various cargo owners sued Defendant for damages to their goods. Plaintiff defended Defendant under reservation of rights until Seventh Circuit determined that only causes of action by shipping company and railroad against Defendant stemmed from its contractual obligations under bill of lading. Language on bill of lading unequivocally states that Defendant warranted that stowage and seals of containers were safe and proper and suitable for handling and carriage. Thus, Defendant agreed to indemnity shipping company and railroad against their own negligence. Parties to contract intended that Defendant's indemnification liability would be restricted to its breach of warranties in contract. (JORGENSEN and BIRKETT, concurring.)

House Bill 3518

Topic: 
Product liability and confidentiality orders
(Martwick, D-Chicago) defines these terms. If good cause is shown, a party required to respond to discovery in a product liability action may obtain a confidentiality order. If the court finds that such a confidentiality order is appropriate, the order shall be narrowly drafted and may permit the subsequent designation of specific confidential materials. If a party objects to a designation that limits disclosure or dissemination of materials under a confidentiality order, the party seeking to limit disclosure or dissemination under a claim of confidentiality must demonstrate, by a preponderance of the evidence, a specific, serious, and substantial interest in confidentiality that outweighs the adverse effect of confidentiality upon the general public health or safety. These new provisions do not preclude the use of confidentiality orders to protect trade secrets; apply to laws or regulations safeguarding the confidentiality of medical records; or apply to healthcare services. Scheduled for hearing this Wednesday in House Judiciary Committee (Civil).
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House Bill 2456

Topic: 
Attorney's fees
(Kay, R-Glen Carbon) Authorizes the Illinois Supreme Court to adopt rules to promote the prompt, efficient, and cost-effective resolution of civil actions in which the amount in controversy is more than $10,000 but does not exceed $100,000. If a circuit court grants or denies, in whole or in part, a motion to dismiss because of the absence of a basis in law or fact for the action, then the court may award costs and reasonable and necessary attorney’s fees to the prevailing party in amounts that the court determines are equitable and just. Authorizes reasonable deposition fees to be recovered as costs. Scheduled for hearing this Wednesday in House Judiciary Committee (Civil).
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BB Syndication Services, Inc. v. First American Title Co.

Federal 7th Circuit Court
BB Syndication Services, Inc. v. First American Title Co.
Civil Court
Insurance
Citation
Case Number: 
No. 13-2785
Decision Date: 
March 12, 2015
Federal District: 
W.D. Wisc.
Holding: 
Affirmed
Dist. Ct. did not err in granting defendant-title insurance company’s motion for summary judgment in action by plaintiff-insured seeking indemnity for insured’s payments of contractors’ liens on failed commercial development, where liens were generated after insured-lender on said development refused to lend developer additional loan proceeds because development had become “out of balance” due to certain cost overruns. Terms of relevant title insurance policy did not generally protect liens that arose after issuance of policy, and provision in instant policy that excluded coverage for liens that are “created or suffered” by plaintiff applied, where instant liens arose from insufficient project funds, which was risk of loss that plaintiff-lender, as opposed to defendant, had authority and responsibility to discover, monitor and prevent.

Senate Bill 1447

Topic: 
Administrative Review Law
(Kotowski, D-Park Ridge) provides that “parties of record” does not include a private citizen who was not acting in an official capacity or whose participation in the agency proceedings was limited to his or her attendance or testimony at a public hearing. Scheduled for hearing next Tuesday in Senate Judiciary Committee.
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Senate Bill 1296

Topic: 
Insured’s Independent Counsel Act
(Mulroe, D-Chicago) applies if an insurer has a duty to defend an insured under a policy of insurance and a significant and actual conflict of interest arises that imposes a duty on the insurer to provide independent counsel to the insured. It requires the insurer to provide independent counsel to the insured unless the insured waives the right to independent counsel in writing. Defines the phrase “significant and actual conflict of interest” to exclude these circumstances: (1) claims or facts in a civil action for which the insurer denies coverage; (2) the mere issuance of a reservation of rights letter by the insurer; (3) a claim of damages in excess of the policy limits; (4) a claim of punitive damages; or (5) any other conflict that is not significant and actual. Scheduled for hearing next Tuesday in Senate Judiciary Committee.
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