Illinois appellate court Archives - Page 2 of 2 - The Insurance & Reinsurance Report

April 26, 2016 Duty to Defend

Third-Party Complaints and the Duty to Defend – Another Decision Cementing Existing Precedent

In Pekin Insurance Company v. Illinois Cement Company, LLC, the Illinois Appellate Court again addressed the important issue of when third-party complaints can be used in evaluating an insurer’s duty to defend. Due to the circumstances surrounding the third-party complaint in question, the Appellate Court held that it was self-serving and could not be used to show that a putative additional insured was vicariously liable for the acts of the insured.

The facts underlying the coverage dispute involve an action brought by Michael Hanson …

March 15, 2016 Policy Conditions, Considerations, Construction, and Formation

Not Better Late Than Never: Illinois Appellate Court Finds in Favor of Insurer on Late Notice Defense

The Illinois Appellate Court, in AMCO Insurance Co. v. Erie Insurance Co., ruled in favor of a CGL insurer based on an additional insured’s violation of the policy’s notice condition. This case represents a significant victory for insurers, which are constantly searching for the enforcement of conditions precedent to coverage.

The Appellate Court held in favor of Erie Insurance Co. based on a late notice defense. As background, on March 15, 2007, Smith filed a negligence action against Hartz Construction Co., KT Richards Construction …

January 14, 2016 Policy Conditions, Considerations, Construction, and Formation

Alcohol, Caffeine and Stimulants: Unambiguous Liquor Liability Exclusion Bars Coverage for Bodily Injury Claims

Refusing to succumb to pressure by an insured to find an ambiguity in an exclusion to a commercial general liability (CGL) policy where none existed, the Illinois Appellate Court, First District in Phusion Projects, Inc. v. Selective Ins. Co., 2015 IL App (1st) 150172 (Ill. App. Ct. 1st Dist. 2015) confirmed that plainly written policy exclusions will be enforced.

In Phusion Projects, the manufacturer of an alcoholic beverage containing high levels of alcohol and other stimulants sought coverage from its CGL insurer for …

August 13, 2015 Duty to Defend

Illinois Court Finds No Breach in Insurance Company’s Decision Not to Defend

Last week, the Illinois Appellate Court affirmed the lower court’s ruling in Illinois Emcasco Insurance Company v. Nationwide Mutual Insurance that Emcasco did not breach its duty to defend a construction contractor against a personal injury suit. This appellate court panel did, however, reverse the lower court’s ruling that Nationwide Mutual Insurance Company breached its duty to settle this personal injury suit within its policy limits.

The underlying injury lawsuit stemmed from a 1998 construction accident filed against Triumph Development Corporation, the project’s general contractor, …

April 21, 2015 Emerging Issues

Illinois Appellate Court Continues To Rollback Seventh Circuit Rulings on Trigger of Coverage for Wrongful Conviction Claims

In yet another decision eviscerating the line of cases from the Seventh Circuit holding that the trigger of coverage for a wrongful conviction claim is the date of favorable termination, and not the date of conviction, the Illinois Appellate Court, Second District in Indian Harbor Insurance Co. v. City of Waukegan, 2015 IL App (2d) 140293 (Mar. 6, 2015), sided with the majority of courts to have addressed this issue, holding that only the date of conviction triggers malicious prosecution coverage.

As background, Juan …