It used to be in Illinois that an insurance broker could be sued for breach of fiduciary duty for just about any policy-related misdeed. See, e.g., Faulkner v. Gilmore, 251 Ill.App.3d 34 (3d Dist. 1993) (alleging breach of fiduciary duty for a broker’s failure to advise insureds to terminate their master surety agreement.) The fiduciary-duty claim did not need to involve the actual handling of client monies; the counts were essentially repackaged negligence or breach of contract allegations, labelled with a seemingly-heightened sense of breached duty.
But in 1997 the Illinois ...
The Madison County Circuit Court recently held that a distributor has a duty of care/duty to warn a secondary exposure plaintiff in the matter of Iben v. A.W. Chesterton Company, et al. In reaching this conclusion, the Court denied defendant Graybar Electric Company’s Motion for Summary Judgment. Iben is a wrongful-death claim arising from allegations that Mrs. Iben developed and died from mesothelioma caused by her exposure to asbestos fibers carried home on the clothing or persons of her husband. A pivitol issue is whether Graybar Electric Company, as a distributor of ...
Environmental contamination lawsuits frequently involve polluting activities which took place decades ago – long before the advent of computers and before it was possible for businesses to store information in an electronic format. When these lawsuits arise and a claim is tendered to an insurance carrier for defense and indemnity, the parties often struggle to verify the existence and terms of any applicable insurance policies in light of the ease with which paper documents can be misplaced over the years. The inability of the parties to locate complete copies of all potentially ...
In a recent decision, the Illinois Appellate Court, Third District, considered what should and should not be considered by a trial court when making a determination on a motion to stay a declaratory judgment action on insurance coverage pending resolution of the underlying litigation. Pekin Insurance Company v. Johnson-Downs Construction, Inc., 2017 IL App (3d) 160601. The underlying suit in Johnson-Downs concerned an injured employee of a subcontractor who sued the general contractor. Originally, the plaintiff employee alleged negligence and premises liability theories ...
Every year, as tax season arrives, new and increasingly diabolic scams to pilfer and misuse taxpayer information surface. In prior years, cyber fraudsters targeted unsuspecting individual taxpayers to trick them into revealing their personal information through direct telephone or email scams. Major data breaches, such as Equifax, which is now known to have included millions of additional victims and more forms of personal identifying and financial data than originally disclosed, only exacerbate the problem. As the public has learned more about identity theft ...
Illinois courts have long made clear that when a conflict of interest exists between an insured and its insurer, the insured is entitled to independent counsel of the insured’s own choosing and at the insurer’s reasonable expense. See Maryland Cas. Co. v. Peppers, 64 Ill.2d 187, 193 (1976). What is less clear, however, is when exactly a conflict of this nature arises.
We know that a conflict giving rise to independent counsel does not exist simply because the insurer provides a defense under reservation of rights. We also know that certain types of cases, such as those involving ...
Today the U.S. Supreme Court denied a cert petition in a matter aimed at resolving whether a plaintiff who alleges a substantial risk of harm in the future has standing under Article III of the Constitution. A ruling in the case, CareFirst v. Attias, would have had major implications for data-breach litigation and in class actions generally.
A quick refresher on standing. To satisfy Article III’s standing requirements, a plaintiff must show (1) he has suffered an “injury in fact” that is (a) concrete and particularized and (b) actual or imminent, not conjectural or ...
In the seminal case outlining the contours of permissible civil liability against religious organizations, the Missouri Supreme Court in Gibson v. Brewer made clear that civil courts must not be in the business of analyzing or interpreting religious doctrine and administration. Any such “excessive entanglement” between church and state has the effect of inhibiting religion, which of course would violate the First Amendment. For this reason, Missouri courts are precluded from reviewing questions of hiring, ordaining, and retention of clergy in religious organizations ...
As we have learned in recent days, we all need to be careful with the things we say, for sometimes those things we say can be used against us. But the life lessons do not end there. We also need to read things carefully, for the things we fail to read can be used against us as well, especially holders of insurance policies.
A recent opinion from the Illinois Appellate Court, Third District, in Laurent v. Johnson, 2017 IL App (3d) 160627, shows just how far an insured’s duty to read his or her insurance policy can reach. The Laurent plaintiff sued the lawyer of her deceased husband’s estate for ...
The Missouri Court of Appeals, Southern District, issued an opinion on Jan. 31, 2018, in Shelter Mutual Insurance Company v. Lester that allowed stacking of full auto liability coverage policy limits on four separate policies. The underlying matter involved bodily injury claims brought by multiple claimants. Each of the auto insurer’s liability policies had applicable bodily injury limits of $50,000 per person / $100,000 per accident. Each policy also had the following anti-stacking provision:
If more than one policy issued by Shelter Mutual Insurance Company or Shelter ...
