Insurance Law

Miller v. Safeco Ins. Co. of America

Federal 7th Circuit Court
Miller v. Safeco Ins. Co. of America
Civil Court
Insurance
Citation
Case Number: 
No. 11-1232
Decision Date: 
June 25, 2012
Federal District: 
E.D. Wisc,
Holding: 
Affirmed
Dist. Ct. did not err in finding in plaintiffs’ favor on breach of insurance contract action alleging that defendant-insurance company improperly failed to pay benefits under policy covering water damage to plaintiffs’ home, where said damage was discovered shortly after plaintiffs had purchased said home. Dist. Ct. could properly apply continuous trigger theory under Wisconsin law to determine that date of injury occurred during policy period and find that instant water damage qualified as accident under terms of policy when neither cause of water damage nor harm was intended, anticipated or expected by either party. Moreover, Dist. Ct. could properly find that defendant was precluded from raising any policy exclusions since defendant had failed to notify plaintiffs of said exclusions prior to plaintiffs discovering water damage to their home.

Stendera v. State Farm

Stendera v. State Farm
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (1st) 111462
Decision Date: 
Friday, June 15, 2012
District: 
1st Dist.
Division/County: 
Cook Co.,6th Div.
Holding: 
Reversed and remanded.
Justice: 
PALMER
Court entered summary judgment in favor of insurer, based on its finding that homeowners suffered no loss after fire that damaged home, as insurer had overpaid under its policy and was entitled to setoff in the amount insurer paid to mortgagee less the amount actually expended to repair home. Court properly found insurer was allowed to set off amount it paid to mortgagee less amount expended for repairs, but erred in granting summary judgment, as genuine issue of material fact remains as to amount actually expended for repairs. (R. GORDON and GARCIA, concurring.)

Edwards v. State Farm Insurance Company

Edwards v. State Farm Insurance Company
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (1st) 112176
Decision Date: 
Tuesday, May 29, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Reversed and remanded.
Justice: 
QUINN
Contested, material facts as to implied waiver issue, which do not solely involve a legal interpretation of contract, preclude summary judgment on insured's breach of contract action against insurer, for duty to pay damages for auto accident that occurred after policy had lapsed and was cancelled for non-payment. One month after accident, and more than one month after cancellation, insured had tendered cash to insurer's clerk, who accepted and processed it and refunded to insured the amount due for period of time when policy was cancelled. (CUNNINGHAM and HARRIS, concurring.)

Skokie Castings, Inc. v. Ill. Insurance Guaranty Fund

Illinois Supreme Court PLAs
Skokie Castings, Inc. v. Ill. Insurance Guaranty Fund
Civil Court
Insurance
Citation
PLA issue Date: 
May 30, 2012
Docket Number: 
No. 113873
District: 
1st Dist.
This case presents question as to whether trial court properly granted plaintiff-self-insured employer's motion for summary judgment in action seeking declaration that defendant-Insurance Fund improperly terminated excess workers compensation payments (that had previously been provided to one of plaintiff's former employees pursuant to policy that plaintiff had with insolvent insurer) after notifying said employee that statutory $300,000 cap under 215 ILCS section 5/537.2 applied to employee's claim. Appellate Court, in affirming trial court, found that: (1) self-insured employer's claim for indemnification against insolvent excess insurer constituted "workers compensation claim" for purposes of applying exception to $300,000 statutory cap found in 215 ILCS section 5/537.2; (2) defendant-Fund was liable for all excess payments paid to employee by plaintiff since excess insurer had gone into liquidation; and (3) defendant was liable for future excess payments to employee pursuant to her prior workers compensation award.

Kirk v. Allstate Insurance

Kirk v. Allstate Insurance
Illinois Appellate Court
Civil Court
Assignments
Citation
Case Number: 
2012 IL App (5th) 100573
Decision Date: 
Tuesday, May 22, 2012
District: 
5th Dist.
Division/County: 
Madison Co.
Holding: 
Reversed and remanded.
Justice: 
GOLDENHERSH
Motorcyclist was struck by driver of automobile owned by another person, resulting in leg amputation. Vehicle owner's insurer failed to notify driver of notice of suit, and did not provide driver with attorney until one year after suit filed. Jury verdict of $1.375 million against driver, with $100,000 setoff for policy limits paid by vehicle owner's insurer. Plaintiff nogoiated settlement with driver's own insurer and obtained assignment of rights from driver to sue vehicle owner's insurer for bad faith. Insurer filed bad faith claim against Plaintiff. Whether Plaintiff induced release is irrelevant; Plaintiff, as assignee, stands in driver's shoes, and insurer is not relieved of its duty to driver. Genuine issues of material fact exist as to bad faith, as insurer did not inform driver of settlement negotiations or that it was excluding him from release, or that he could be held personally responsible for excess. (WELCH and SPOMER, concurring.)

Pekin Insurance v. Tovar Snow Professionals

Pekin Insurance v. Tovar Snow Professionals
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (1st) 111136
Decision Date: 
Tuesday, May 8, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 2d Div.
Holding: 
Affirmed.
Justice: 
QUINN
CGL insurer filed declaratory judgment action as to duty to defend its insured, a snow removal service's subcontractor, in slip and fall negligence suit for injuries. Insurer argued that its policy restricted additional coverage endorsements only to construction contracts, and not to snow removal, because the word "construction" appeared as a limiting adjective in endorsement heading in contract . Specific wording in text of endorsement contained no limitation on type of contract covered other than that contract be written. Actual text of policy language and purpose of policy brought suit within policy coverage despite presence of the word "construction" in heading of endorsement section. (CUNNINGHAM and HARRIS, concurring.)

State Farm Fire and Casualty Company v. Young

State Farm Fire and Casualty Company v. Young
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (1st) 103736
Decision Date: 
Friday, April 20, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 6th Div.
Holding: 
Affirmed.
Justice: 
GARCIA
Insurer filed declaratory judgment action as to defense of civil suit against insured for assault and battery and negligence. Suit alleged that insured, age 21, provided heroin to young woman, then beat her after she became ill from overdose, and failed to seek medical attention; she died from injuries and overdose. Court properly found that no material question of fact existed, under facts alleged in complaint, that insured intentionally caused injuries, and thus insurer owed no duty to defend. Only intentional conduct by Defendant was alleged; even though allegations as to failure to call 911 was labeled "negligence", it was free from doubt that his failure to act was intentional and result from failure to act was expected, and Defendant's omissions were subject to policy exclusion provisions for intentional conduct. (LAMPKIN and PALMER, concurring.)

Metropolitan Property and Casualty Insurance Company v. Stranczek

Metropolitan Property and Casualty Insurance Company v. Stranczek
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (1st) 103760
Decision Date: 
Friday, March 30, 2012
District: 
1st Dist.
Division/County: 
Cook Co., 5th Div.
Holding: 
Reversed.
Justice: 
McBRIDE
(Court opinion corrected 4/23/12.) Defendant's position as village mayor for 28 years was an "occupation" within meaning of coverage exclusion in insurance policies, and thus coverage exclusion applies to acts giving rise to underlying lawsuits against mayor and village alleging that they supplied contaminated drinking water from contaminated well to village residents. Thus, insurer had no duty to defend mayor in suits. (EPSTEIN and J. GORDON, concurring.)

Standard Mutual Insurance Company v. Lay

Standard Mutual Insurance Company v. Lay
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (4th) 110527
Decision Date: 
Friday, April 20, 2012
District: 
4th Dist.
Division/County: 
Macoupin Co.
Holding: 
Affirmed.
Justice: 
KNECHT
Insured real estate agency faxed ad as to property for sale in violation of Telephone Consumer Protection Act (TCPA), without permission of recipient, and was sued in class action. Court properly granted CGL insurer's motion for summary judgment in declaratory judgment action. Insurer's reservation of rights letter contained disclosures necessary to avoid being estopped from raising policy coverage issues. TCPA's $500 per fax liquidated damages provision is a penalty in the nature of punitive damages, not insurable as a matter of Illinois law and public policy. (STEIGMANN and COOK, concurring.)

Illinois School District Agency v. The St. Charles Community Unit School District 303

Illinois School District Agency v. The St. Charles Community Unit School District 303
Illinois Appellate Court
Civil Court
Insurance
Citation
Case Number: 
2012 IL App (1st) 100088
Decision Date: 
Friday, March 30, 2012
District: 
1st Dist.
Division/County: 
Cook Co.,6th Div.
Holding: 
Reversed in part and affirmed in part; remanded.
Justice: 
GARCIA
(Court opinion corrected 4/19/12.) Targeted tender rule does not extend beyond cases involving concurrent insurance policies, and does not apply to consecutive insurance policies. Court properly denied School District's claim for reimbursement for certain invoices for same mold expert who was separately retained by risk pooling insurer and School District. Court properly found that contested expenses were incurred pursuant to expert's engagement by School District and not at request of insurer, which policy requires for reimbursement. (McBRIDE and R. GORDON, concurring.)