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Recent Case Results: Richard M. Kuntz, Partner

American Economy Insurance Company v. DePaul University, 383 Ill. App. 3d 172 (1st Dist. 2008), App. granted and dismissed, 229 Ill.2d 617 (2009).  Duty to defend, attorney’s fees, and post-judgment interest awarded against non-defending insurer based upon additional insured coverage.

Tonicstar Ltd. v. Lovegreen Turbine Servs., 535 F.3d 790 (8th Cir. 2008).  No coverage for non-settling Lloyds Syndicate member for $6.7 million business interruption based upon plant shut-down, under Business Risk Exclusions.

U.S. Fire Ins. Co. v. Albex Aluminum, Inc., 161 Fed. Appx. 562 (6th Cir. 2006).  Federal abstention of declaratory judgment action upheld under the Brillhart-Wilton Doctrine where parallel state court tort action proceeding, even where tort action had no insurance coverage aspects.

Pilling v. Va. Prop. & Cas. Guarantee Fund, 95 Fed. Appx. 126 (6th Cir. 2004).  Priority of coverage/drop-down/state guaranty fund issues.

Insura Prop. & Cas. Co. v. Steele, 344 Ill. App. 3d 466 (5th Dist. 2003).  Enforced Altering Vehicle Exclusion from vehicle liability policy, for catastrophic personal injury.

Citizens for a Better Environment v. Illinois Pollution Control Board, 152 Ill. App. 3d 105 (1st Dist. 1987).  Upheld portions of business-backed regulation; upheld ability of challenged Board member to participate in decision.

Coregis Ins. Co. v. City of Harrisburg, 401 F.Supp.2d 398; 2006 U.S. Dist. LEXIS 20340 (M.D. Pa. 2006).  No coverage for multi-year false imprisonment and related civil rights act claims, where underlying plaintiff wrongfully convicted but policy not in force during operative time.

Great Lakes Dredge & Dock Co. v. Commer. Union Assur. Co., 2002 U.S. Dist. LEXIS 18500 (N.D. Ill.), 260 F.3d 789 (7th Cir. 2001), cert. denied, 535 U.S. 1012 (2002).  Obtained reversal of $40 million trial court judgment against insurer where insurance was not enforced on the date of flooding of entire Chicago business district; upheld principle that coverage triggered by incurrence of property damage rather than cause of property damage.

McWhorter Dist., Inc. v. National Specialty Ins. Co., No. 39-2009-00201486-CU-IC-STK (Sup. Ct. San Joaquin Cnty., CA March 15, 2010).   Dismissed insured’s claim for coverage under MCS-90 endorsement, where other proceeds available from another insured to satisfy $750,000 regulatory requirement; also dismissed on ripeness grounds where no final judgment to potentially trigger MCS-90 endorsement.

Babinski v. Am. Family Ins. Group, 543 F.Supp.2d 1035 (D. Minn. 2008)

Castro v. South Chicago Community Hospital, 166 Ill.App.3d 479 (1st Dist. 1988)

Chaveriat v. Williams Pipe Line Co., 11 F.3d 1420 (7th Cir. 1993)

Specialty Underwriters Alliance v. Peebles McManus LLC, et al., No. 3:08-cv-888-MEF (M.D. Ala. Nov. 30, 2009)


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