Anthony Tunney and Robert Elworth Obtain Summary Judgment on Behalf of Insurance Agency Client in Federal Opinion
Chicago partners Anthony Tunney and Robert Elworth obtained summary judgment for their client in a federal case involving a massive insurance fraud, whose perpetrator is serving a ten-year prison sentence.
Plaintiff was a victim of the scheme, having received phony coverage despite a first-installment premium payment of more than $1.3 million and more than $3 million in claimed damages. HeplerBroom's client, an insurance agency, acted briefly as the program’s administrator, was unaware of its fraudulent nature, and had issued more than 60 other policies pursuant to underwriting guidelines. The plaintiff’s policy was not among those issued policies. Despite the agency’s involvement in the program, the Northern District of Illinois order held that the agency owed no duty to the plaintiff under Illinois law, because no request was ever made to the agency to procure coverage for this specific insured and the agency received no commission from this transaction, thus warranting summary judgment on all counts.