Insurance Law

Selective Ins. Co. of S. Carolina v. City of Paris

Federal 7th Circuit Court
Civil Court
Insurance
Citation
Case Number: 
No. 13-1699
Decision Date: 
October 2, 2014
Federal District: 
C.D. Ill.
Holding: 
Affirmed
Dist. Ct. did not err in denying defendants’ motion to reconsider Dist. Ct.’s grant of plaintiffs-insurance companies’ motions for summary judgment in action seeking declaration that plaintiffs did not owe duty to defend defendants in underlying malicious prosecution action, where Dist. Ct. had granted said motion for summary judgment approximately 33 months prior to filing of motion to reconsider, and where basis for motion to reconsider was defendants’ claim that subsequent change in case law called into question correctness of Dist. Ct.’s January 2010 order that found that claim for malicious prosecution occurs for insurance purposes on date when prosecution was instituted. Dist. Ct. could properly find that its January, 2010 order was final judgment because there were no other separate claims pending at time Dist. Ct. had entered its judgment, and because said order had been entered pursuant to Rule 58. Fact that case law might have changed subsequent to time when January 2010 order became final was insufficient to seek reconsideration under Rule 60(b). Ct. rejected defendants’ contention that one plaintiff’s claim for reimbursement of defense costs in underlying declaratory judgment action was separate and “pending” matter that allowed them ability to proceed on their motion to reconsider under Rule 54(b).

State Farm Mutual Automobile Insurance Co. v. Easterling

Illinois Appellate Court
Civil Court
Subrogation
Citation
Case Number: 
2014 IL App (1st) 133225
Decision Date: 
Thursday, September 18, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 4th Div.
Holding: 
Reversed.
Justice: 
TAYLOR
Insurer of injured driver paid driver's medical expenses and property damage and then sought reimbursement from driver of other car through subrogation rights from that driver's insurer. Insured injured driver had previously filed personal injury suit against other driver, and parties settled, and insurer endorsed settlement check. By signing settlement check, insurer did not give up all its subrogation rights, but only as to bodily injury. There was no accord and satisfaction of insurer's property damage claim as there was no evidcence of mutual intent to compromise the property damage claim.(FITZGERALD SMITH and EPSTEIN, concurring.)

Pace Communications Services Corporation

Illinois Appellate Court
Civil Court
Telephone Consumer Protection Act
Citation
Case Number: 
2014 IL App (2d) 131058
Decision Date: 
Wednesday, September 10, 2014
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Affirmed.
Justice: 
SPENCE
Plaintiffs filed class action alleging that Defendant company violated TCPA by faxing unsolicited advertisements. Defendant's insurer declined coverage, asserting that faxes were not sent during policy periods. Insurer then filed declaratory judgment action in federal court. Plaintiffs and Defendant settled class action, and Plaintiffs filed citation proceeding against insurer. Court properly dismissed citation proceeding, as declaratory judgment in federal action bars relitigation of insurer's duty to indemnify Defendant. Insurer established issue preclusion in circuit court as Plaintiffs were in privity with Defendant, through settlement agreement which created substantive legal relationship between them, and collateral estoppel elements were met. (McLAREN and JORGENSEN, concurring.)

Argonaut Midwest Insurance Company v. Morales

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2014 IL App (1st) 130745
Decision Date: 
Wednesday, September 3, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 3d Div.
Holding: 
Affirmed.
Justice: 
HYMAN
(Court opinion corrected 9/16/14.) Semi-truck driver's insurer filed declaratory judgment action claiming it had no duty to defend or indemnify semi-truck driver in underlying suit filed for injuries from accident when semi-truck struck vehicle. A motor carrier's responsibility for vehicle does not abate when it opts not to exercise its right to control the vehicle.Federal law controls interpretation of owner-operator agreement because agreement is "subject to" DOT regulations. Insurer's bobtail insurance police provides coverage when driver is using his truck for his own purposes, not when he is renting it to a trucking company, when federal law requires trucking company to procure its own insurance to cover driver when company is using driver's vehicle. Thus, driver's insurer has no duty to defend or indemnify truck company under driver's policy. (NEVILLE, concurring; MASON, dissenting.)

St. Paul Fire and Marine Insurance Company v. The City of Zion

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2014 IL App (2d) 131212
Decision Date: 
Wednesday, September 10, 2014
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Affirmed.
Justice: 
ZENOFF
Under unambiguous language of City's insurance policy, occurrence triggering coverage is commencement of alleged malicious prosecution, not the termination of the prosecution in favor of the insured. Policy language required "injury" caused by prosecution to "happen" during policy period. As commencement of prosecution occurred outside policy period, court properly granted summary judgment in favor of insurer. (SCHOSTOK and HUDSON, concurring.)

Mt. Hawley Insurance Company v. Certain Underwriters at Lloyd's, London

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2014 IL App (1st) 133931
Decision Date: 
Tuesday, September 9, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
LIU
Insurer filed declaratory judgment action against another insurer (Underwriters) alleging that it owed duty to defend and indemnify Defendants in personal injury suit at construction site. Underwriters wrongfully rejected tender of defense by its insured, and because it asserted a policy defense, it is estopped from asserting other defenses regarding scope of coverage. (HARRIS and PIERCE, concurring.)

G.M. Sign, Inc. v. State Farm Fire and Casualty Co. -

Illinois Appellate Court
Civil Court
Duty to Defend
Citation
Case Number: 
2014 IL App (2d) 130593
Decision Date: 
Friday, May 2, 2014
District: 
2d Dist.
Division/County: 
Lake Co.
Holding: 
Reversed and remanded with directions.
Justice: 
ZENOFF
(Modified upon denial of rehearing 9/2/14.) Declaratory judgment action for insurance coverage in blast-fax case. Amended complaint contained no factual allegations of faxes other than those in violation of TCPA. Insurer's policy exclusion for injury arising out of violation of Telephone Consumer Protection Act (TCPA) or other statutes prohibiting sending material, applied, so that insurer's duty to defend was never triggered. Insured obtained benefit of its settlement agreement in underlying litigation by taking position that faxes were sent in violation of TCPA, insured cannot argue that insurer owed a duty to defend because its amended complaint potentially included faxes falling outside of TCPA.(JORGENSEN and BIRKETT, concurring.)

Crackel v. State Farm Insurance Company

Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2014 IL App (5th) 130366
Decision Date: 
Thursday, August 28, 2014
District: 
5th Dist.
Division/County: 
Effingham Co.
Holding: 
Reversed and remanded with directions.
Justice: 
GOLDENHERSH
Policyholders filed declaratory judgment action for compensation for loss of their vehicle, which they sold to a person who committed theft by deception, as he obtained control of their car by misrepresenting his identity and by paying for it with a fraudulent check. Policy explicitly states that it will pay for loss to covered vehicle, and defines loss as partial or total theft of vehicle. As policyholders' loss of vehicle was result of theft, it should be covered by policy. Plaintiffs' relinquishment of their vehicle was not voluntary, as it involved theft based on fraud. (WELCH and STEWART, concurring.)

The Not-So-Accidental Claimant: Insurance Coverage for Intentional Harm

By Richard J. VanSwol
September
2014
Article
, Page 444
Insurance policies don't indemnify insureds who cause intentional or expected harm. But what is and isn't "intentional" or "expected"? The cases offer some clues.

Nautilus Ins. Co. v. Bd. of Directors of Regal Lofts Condominium Ass’n

Federal 7th Circuit Court
Civil Court
Insurance
Citation
Case Number: 
No. 12-1821
Decision Date: 
August 21, 2014
Federal District: 
N.D. Ill., E. Div.
Holding: 
Affirmed
Dist. Ct. did not err in granting plaintiff-insurance company’s motion for summary judgment in action seeking declaration that it was not required to defend or indemnify insured-developer in underlying complaint seeking damages against developer arising out of water damage to condominium and to resident’s personal property that stemmed from poor workmanship by developer. Under terms of policies, developer’s poor workmanship with respect to construction project/condominium was not “occurrence” or “accident” so as to provide coverage for damage to condominium itself. Moreover, while damages to residents’ personal property was potentially covered under policies, policies’ products-completed operations’ hazard exclusion applied so as to preclude coverage, where developer had completed construction work on condominium by time residents had moved in and subsequently incurred water damage to personal property.