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J&B Blog Archives

Illinois Court Revisits Attorney-Client Privilege between Insurer and Insured

An issue that often arises in insurance coverage litigation is the extent to which an insured can shelter communications with its attorneys from an insurer which may have a defense duty or may be liable for paying a third party claim. A recent appellate decision means that insurers may not obtain attorney-client communications from their   Continue Reading »

Extracontractual Damages Without Bad Faith

Generally third party insurers have good reason to believe that if they don’t commit bad faith, the most they will have to pay for indemnity is the amount of the insurer’s policy limit. Numerous cases, of course, have held that where an insurer breaches the duty to settle, though, it will be on the hook   Continue Reading »

Can The Underlying Plaintiff Collect More Than The Amount of the Underlying Judgment in Third Party Failure to Settle Cases?

In the typical third party bad faith case, the underlying plaintiff’s attorney makes a policy limits settlement demand, the insurer does not agree to pay its limits, or does not do so in the time the plaintiff’s attorney thinks it should, and the plaintiff then obtains a verdict substantially in excess of the policy limits.   Continue Reading »

Self-Insured Retentions and High Deductibles: Their Impact on Insurers and Policyholders

In the current economic climate, first-dollar coverage has become a luxury that many commercial insureds can no longer afford. Although policies with large self-insured retentions and deductibles have always been available, they were frequently overlooked in the past when bottom lines were healthier and insurance premium costs were subject to less scrutiny. As more insureds   Continue Reading »

ILLINOIS SUPREME COURT RULES THAT TCPA DAMAGES ARE INSURABLE

Since Congress passed the Telephone Consumer Protection Act (“TCPA”), 47 USC §227(b), courts have struggled to determine the extent to which insurance coverage is available for damages awarded under the act.  In Standard Mutual Ins. Co. v. Lay, 2013 IL 114617 (May 23, 2013), the Illinois Supreme Court removed any doubts that such damages are   Continue Reading »

A COOK COUNTY FIRST MUNICIPAL DEPARTMENT PRIMER

Many lawyers have found themselves slightly confused while appearing in courtroom 1501 of the Richard M. Daley Center for the first time.  Courtroom 1501 is responsible for handling all First District Municipal cases in which a jury demand has been filed. These cases are typically personal injury lawsuits arising from motor vehicle accidents.  Unlike the   Continue Reading »

INSURERS BEWARE: ILLINOIS' FIFTH DISTRICT SCRUTINIZES POLICY LIMIT SETTLEMENT ISSUES

On May 22, 2012, Illinois’ Fifth District issued an opinion that insurers across the state should take immediate notice.   The opinion, entered in Kirk v. Allstate Insurance Co., No. 5-10-0573 (Ill. App. 5th Dist. 2012), highlights the importance of securing proper releases which fully protect their insureds from personal liability in matters involving policy limit payments.   Continue Reading »

RECENT NORTHERN DISTRICT DECISION IMPACTS CONFLICT OF INTEREST CASES IN ILLINOIS

When Does a Conflict of Interest Exist Between an Insurer and Its Insured Under Illinois Law? Under Illinois law, when a conflict of interest exists between an insurer and its insured, the insurer must decline to defend the insured and, instead of participating in the defense, the insurer must pay for independent counsel for the   Continue Reading »

PROOF WITHOUT A "PROOF OF LOSS"

Any insurance policy you come across these days will contain a suit filing deadline, but in Illinois that deadline is more often than not tolled by section 143.1 of the Illinois Insurance Code.  215 ILCS 5/143.1 (West 2006).  Section 143.1 is a statutory restriction on contractual limitation provisions that was designed to prevent insurance companies   Continue Reading »

FIRST DISTRICT REVISITS COOPERATION ISSUES IN RECENT THIRD PARTY LIABILITY CASE

Illinois’ First District in Founders Ins. Co. v. Shaikh, 405 Ill.App.3d (1st Dist. 2010) recently examined various issues and obligations surrounding the duty to cooperate in a third- party liability defense case.  Specifically, the Shaikh decision highlights the existence of dual cooperation obligations placed on the insurer and the insured, and provides a fairly detailed historical overview of   Continue Reading »

Johnson and Bell

Johnson and Bell