|
|
Johnson & Bell’s Insurance group works with insurance companies, corporations and self-insured entities to resolve complex coverage issues arising from claims made on both first- and third-party insurance policies. Many of these issues arise from the alleged failure to defend under liability policies or arise out of a failure to settle claims that result in bad-faith litigation.
Our attorneys have vast experience in all types of first-party coverage cases including arson, fraud, fidelity, intentional acts and employee dishonesty. Third-party coverage issues include advertising injury, construction defect, environmental issues and commercial auto policies.
Our coverage attorneys are adept at trying declaratory coverage actions and are skilled courtroom litigators. We are active in various state courts, federal courts and administrative agencies.
The attorneys in our Insurance group recognize that in many situations the client is best served by avoiding litigation. We have extensive experience in drafting reservation of rights letters and in dealing with the ethical and practical implications of the status of the relationship between the insurer, the insured, and defense counsel. In addition, our coverage group attorneys provide innovative opinions for clients who seek to rewrite insurance policy language.
Representative Cases
- Represented an insurer seeking a declaratory judgment order that insurer had no duty to defend or indemnify a pharmacy in several wrongful death suits where the druggist admitted to conspiracy to sell controlled substances.
- Filed a declaratory judgment action in federal court on behalf of insurer of an aircraft part manufacturer sued for failure to warn that component parts had limited shelf life, resulting in a crash of a helicopter in Iraq. Coverage was denied due to an exclusion for “airline products” and late notice.
- Represented property insurer contending that the loss to a building contaminated by asbestos resulting in the complete remediation of the property was excluded by the negligent work exclusion. Obtained summary judgment on bad faith counterclaim which was upheld by the Illinois Appellate Court.
- Represented an insurer in a civil lawsuit in state court against a former claims adjuster and third-party contractors who conspired to embezzle funds and then launder those funds through the construction and sale of a luxury home.
- Defended an insurer against several lawsuits by policyholders who alleged breach of contract and bad faith as a result of the denial of their claims under the intentional acts and concealment or fraud provisions of those policies.
- Represented life insurer denying coverage to policyholder under a term life policy due to a change in the insured’s health condition (brain tumor) subsequent to the application but prior to the delivery of the policy. Summary judgment granted by U.S. Dist. Court (N.D. Illinois).
- Represented an insurer in an action to rescind its insurance policies due to the insured’s misrepresentation on its application for coverage concerning its knowledge of a potential loss. The insurer and insured entered into a tolling agreement after the apparent misrepresentation was discovered, and in the meantime another claim was made with alleged losses in excess of $100 million. The insured has denied it made any misrepresentations and therefore the insured is not entitled to rescind. The parties have exchanged more than three million pages of documents and have deposed more than 40 witnesses.
- Represented insurer in construction defect coverage litigation, where insured was charged with faulty construction of condominium building, resulting in damage to numerous condominium units. Involved issues of whether there was an occurrence, property damage and application of various exclusions.
- Represented health care liability insurer in declaratory judgment action concerning coverage for more than 120 lawsuits against physician for allegedly unnecessary surgery. Declaratory action claimed that insured physician knowingly performed unnecessary surgeries.
Recent Opinions
- Appellate Court affirmed summary judgment for our client, an insurer, who denied coverage to a putative insured listed on a certificate of insurance. Case involved a brain- damaged plaintiff who fell on ice in a shopping center parking lot. Shopping center claimed additional insured status under a policy issued to the snow removal service. The Appellate Court agreed that the certificate of insurance listing them as an additional insured did not bind the insurer as the policy was not amended to include them and there was no written contract requiring additional insured status. Acuity v. Mid-Northern Equities (1-06-0157 First Dist. May 17, 2007).
- Obtained summary judgment on behalf of client seeking coverage from insurer in a trademark infringement case. Insurer contended that it had no duty to defend the client due to a policy exclusion for willful or knowing acts. The underlying complaint alleged willful or knowing acts. The underlying complaint also alleged willful and intentional violation of trademark and trade dress in marketing counterfeit golf balls. Court ruled that negligent infringement was possible and policy exclusions for non-conforming goods did not apply and thus insurer had a duty to defend. Allied Insurance Co. v. Cam Golf, (2007 U.S. Dist. Lexis 13339 N.D. Ill.).
- Summary judgment for insurer was affirmed by Illinois Appellate Court finding that there was no coverage to plaintiff under the Uninsured Motorist policy of our client as the plaintiff was not an insured pursuant to the endorsement. The vehicle he was operating was not an “owned” auto and because UM coverage does not apply to an insured while occupying a motor vehicle furnished for his regular use if the vehicle is not described in the policy. Plaintiff, who suffered burns over 70% of his body, petitioned for leave to appeal to the Supreme Court of Illinois, which denied the petition. Bunnow v. Liberty Mutual (1-05-1220 First. Dist. 2005).
- Obtained judgment on pleadings on behalf of healthcare liability insurer in suit alleging bad faith failure to settle underlying claim against physician. Bad faith suit was brought by physician’s employer, which purchased policy and was listed as a policyholder, but was not insured under the policy. Court ruled that employer/policyholder could not sue for bad faith failure to settle, since it was not insured. Iowa Physicians’ Clinic Medical Foundation v. Mullin, 2007 U.S. Dist. LEXIS 57046 (C.D.Ill. 8/6/07).
- Insurer did not have duty to defend or indemnify additional insured in action brought by named insured’s employee for injuries suffered in construction accident because additional insured endorsement precluded coverage for liability due to additional insured’s own negligence, and only way plaintiff could recover against additional insured was by establishing additional insured’s own negligence. National Union Fire Ins. Co. of Pittsburgh, PA. v. R. Olson Construction Contractors, Inc., 329 Ill.App.3d 228, 769 N.E. 2d 977 (2nd Dist. 2002).
Insurance Attorneys
Fall 2011 Insurance Newsletter
|
