Insurance Law

Golden v. State Farm Mutual Automobile Ins. Co.

Federal 7th Circuit Court
Golden v. State Farm Mutual Automobile Ins. Co.
Civil Court
Insurance
Citation
Case Number: 
No. 12-3901
Decision Date: 
March 11, 2014
Federal District: 
N.D. Ind., Ft. Wayne Div.
Holding: 
Affirmed
Dist. Ct. did not err in dismissing for failure to state cause of action plaintiff-insured’s lawsuit alleging that defendant-insurance company’s use of in-house attorneys to represent plaintiff against third-party claims violated Indiana law, since defendant owed plaintiff duty to explain in its policy that such in-house counsel may be used. No such duty existed, where language of policy indicated that defendant would provide defense by “counsel of our choice,” and plaintiff failed to allege that Indiana Dept. of Insurance required that defendant provide more explicit notice regarding identity of counsel.

Rosalind Franklin University of Medicine and Science v. Lexington Insurance Company

Rosalind Franklin University of Medicine and Science v. Lexington Insurance Company
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2014 IL App (1st) 113755
Decision Date: 
Friday, March 7, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Affirmed in part and reversed in part; remanded.
Justice: 
TAYLOR
In declaratory judgment action, insured medical school claimed coverage for settlement it paid in underlying suit filed by former patients seeking compensation for school's decision to discontinue experimental cancer vaccine program. Insurer owed duty to pay for school's defense and settlement costs under primary policy and excess policy, as its policies covered liability resulting from medical incident arising out of professional services. Other insurer owes no duty to indemnify school for settlement, as its policy contained specific exclusion for medical malpractice damages. (GORDON and PALMER, concurring.)

American Service Insurance Company v. China Ocean Shipping Company

American Service Insurance Company v. China Ocean Shipping Company
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2014 IL App (1st) 121895
Decision Date: 
Tuesday, March 4, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
SIMON
Declaratory judgment action filed regarding coverage for multivehicle accident with many fatalities and injuries. Defendant owners of trailer involved in accident filed supplemental fee petition seeking insurer for attorney fees and costs and prejudgment interest. Law of the case doctrine bars parties from relitigating issues already decided in same case, as to questions of law and fact and both explicit and implicit decisions. Court properly denied insurer's discovery request, as insurer was seeking discovery as to issues barred by law of the case doctrine. Insurer bears burden of identifying evidence to be elicited in evidentiary hearing to show that insurer is entitled to evidentiary hearing on fee petition. (PIERCE and LIU, concurring.)

Allstate Property & Casualty Insurance Company v. Trujillo

Allstate Property & Casualty Insurance Company v. Trujillo
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2014 IL App (1st) 123419
Decision Date: 
Friday, February 28, 2014
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Reversed and remanded.
Justice: 
REYES
(Court opinion corrected 3/5/14.) Court erred in ruling that insurer was entitled to set off insured's claim for underinsured motorist (UDIM) benefits with amounts insurer paid under bodily injury coverage of same insurance policy, relating to car accident with multiple tortfeasors. UDIM coverage is intended to place insured in same position as if injured by motorist with insurance in same amount as UDIM policy. Where policy has latent ambiguity, insured can seek both bodily injury and UDIM benefits. (ROCHFORD and LAMPKIN, concurring.)

House Bill 5453

Topic: 
Increased court fees
(Brauer, R-Springfield) lifts the cap on the $25 court-services fee that a county may charge civil litigants and convicted defendants for courthouse security if there is an acceptable cost study prepared that justifies it. Scheduled for House Judiciary Committee Wednesday morning.
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Powell v. American Service Insurance Company

Powell v. American Service Insurance Company
Illinois Appellate Court
Civil Court
Settlements
Citation
Case Number: 
2014 IL App (1st) 123643
Decision Date: 
Tuesday, February 18, 2014
District: 
1st Dist.
Division/County: 
Cook Co.,1st Div.
Holding: 
Affirmed.
Justice: 
DELORT
Court properly dismissed with prejudice complaint for bad-faith failure to settle within policy limits. Plaintiff had demanded $20,000 policy limits of adverse driver's insurer for car accident injuries, but insurer rejected demand. Jury awarded Plaitniff net verdict of $47,951 plus costs. As Plaintiff admitted that he made a potentially illegal U-turn in front of other vehicle, and given nature of accident, Plaintiff did not sufficiently plead facts showing reasonable probability of liability against adverse driver at time of settlement demand, which is when duty to settle arises. (HOFFMAN and CUNNINGHAM, concurring.)

Senate Bill 3169

Topic: 
Funding of litigation
(Haine, D-Alton) creates the Non-Recourse Civil Litigation Funding Act that regulates lending to consumers in litigation in which the consumer assigns to the lender a contingent right to receive a portion of the potential proceeds of the consumer's legal claim. Just introduced.
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House Billl 4428

Topic: 
Attorney statute of repose
(Sandack, R-Lombard) amends the Code of Civil Procedure statute of repose for attorneys by tolling the six-year statute of repose if the client is still represented by the attorney or the attorney knowingly conceals the act or omission. The period of limitations will not begin to run until the person is no longer represented by the attorney or until the client should have known of the injury. Introduced and referred to House Rules Committee.
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Skaperdas v. Country Casualty Ins. Co.

Illinois Supreme Court PLAs
Skaperdas v. Country Casualty Ins. Co.
Civil Court
Insurance
Citation
PLA issue Date: 
January 29, 2014
Docket Number: 
No. 117021
District: 
4th Dist.
This case presents question as to whether trial court properly granted defendants-insurance company and insurance agent’s motion to dismiss plaintiffs' complaint alleging negligence in defendants’ failure to procure insurance coverage for certain individuals, who had subsequently been sued for damages arising out of motor vehicle accident. While trial court found that neither defendant owed plaintiffs duty of care in procuring insurance where defendant-insurance “agent” was not insurance “broker,” Appellate Court, in reversing trial court, found that plaintiff stated valid cause of action because dichotomy between insurance agent and insurance broker no longer exists under section 2-2201 of Ill. Insurance Placement Liability Act for purposes of establishing duty of care .