Choice of Law Admission of Extrinsic Evidence Insurer Allocation Pre-Tender FeesStatute of Limitations
Insurance policy is governed by the law of the state where the policy was issued or delivered or by the law of the place of the last act to give rise to a valid contractFacts known to the insurer (“true but unpleaded facts”)If one claim is potentially covered, must defend entire suitRecoverable10 Years
Lapham-Hickey Steel Corp. v. Protection Mut. Ins. Co., 655 N.E.2d 842, 845 (Ill. 1995)L.J. Dodd Constr., Inc. v. Federated Mut. Ins. Co., 848 N.E.2d 656, 658 (Ill. App. Ct. 2006)
Aetna Life & Sur. Co. v. N. Trust Co. of Ill..523 N.E.2d 1043, 1044 (Ill. App. Ct. 1988) (“Consequently, had Baron’s complaint contained a count that inartfully or incompletely alleged a cause of action sounding in malicious prosecution or a closely related legal theory such as abuse of process, or if the underlying complaint had contained factual allegations amounting in substance to all of the elements necessary for malicious prosecution or abuse of process claims (even upon amendment), Northern’s assertion of Aetna's duty to defend might be meritorious.”)
Capitol Indem. Corp. v. Elston Self Serv. Wholesale Groceries, Inc., 551 F. Supp. 2d 711, 729 (N.D. Ill. 2008) aff'd, 559 F.3d 616 (7th Cir. 2009) ("Construing the allegations of the Lorillard Amended Complaint liberally and drawing every inference in favor of the insureds, as the court must...")
Santa’s Best Craft, LLC v. St. Paul Fire and Marine Ins. Co., 611 F.3d 339, 352 (7th Cir. (Ill.) 2010)
Valley Forge Ins. Co. v. Swiderski Electronics, 223 Ill. 2d 352, 363 (2006)
General Agents Ins. v. Midwest Sporting Goods, 215 Ill. 2d 146, 166 (2005)
Westchester Fire Ins. Co. v. G. Heileman Brewing Co., 747 N.E.2d 955, 968 (Ill. App. Ct. 2001)
Central Mut. Ins. Co. v. Useong Int’l, Ltd., 394 F. Supp. 2d 1043, 1053 (N.D. Ill. 2005)
Pekin Ins. Co. v. XData Solutions, Inc., 958 N.E.2d 397, 404 (Ill. App. Ct. 2011)
(IL ST CH 735 § 5/13-203)
Pre-Judgment Interest Late Notice Public Policy Bar Independent CounselAtty's Fees/Decl. Relief Action
5%Unreasonable notice of an occurrence or lawsuit will bar defense, even if insurer is not prejudiced (prejudice is a factor but not conclusive)Bar to indemnity, not defenseMay choose own counselRecoverable if the insurer is vexatious and unreasonable
(§ 815 ILCS 205/2)Country Mutual Ins. Co. v. Livorsi Marine, Inc., 856 N.E.2d 338, 346 (Ill. 2006)Dixon Distrib. Co. v. Hanover Ins. Co., 161 Ill. 2d 433, 446-47 (1994)
Lincoln Logan Mut. Ins. Co. v. Fornshell, 722 N.E.2d 239, 242 (Ill. App. Ct. 1999)
Employers Ins. of Wausau v. Ehlco Liquidating Trust, 708 N.E.2d 1122, 1137 (Ill. 1999)Mobil Oil Corp. v. Maryland Cas. Co., 681 N.E.2d 552, 562 (Ill. App. Ct. 1997)
Gaston v. Founders Ins. Co., 847 N.E. 2d 523, 541 (Ill. App. Ct. 2006)