An Illinois federal court recently held that an insured’s bad faith claim fell within the scope of an arbitration provision contained in a D&O Policy and therefore granted the insurer’s motion to compel arbitration.
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Illinois Developments
Federal Court in Illinois Grants Judgment on the Pleadings in Legionnaire’s Disease Coverage Suit Based On Insureds’ Lack of Denial That Policy Contained Bacteria Exclusion
By Troutman Pepper Locke on
An Illinois federal district court recently granted an insurer’s motion for judgment on the pleadings in a declaratory judgment suit regarding coverage for claims related to bacteria. AMCO Ins. Co. v. Swagat Group, LLC, et al., No. 07-3330 (C.D.Ill. Feb. 10, 2009).
Illinois Federal Court Dismisses Antitrust Suit Brought by Institutional Pharmacy Against Insurer
By Troutman Pepper Locke on
On January 16, 2009, United States District Judge Rebecca R. Pallmeyer, of the U.S. District Court, Northern District of Illinois, Eastern Division, granted summary judgment in favor of defendants UnitedHealth Group, Inc. and Pacificare Health Systems, Inc. on all claims in the antitrust litigation with institutional pharmacy Omnicare, Inc.
Illinois Federal Court: FDA Premarket Approval Process Preempts State Law Causes of Action
By Troutman Pepper Locke on
Relying on the Supreme Court’s decision in Riegel, the U.S. District Court for the Northern District of Illinois recently held that the Food and Drug Administration’s (“FDA”) extensive premarket approval (“PMA”) process for Class III medical devices preempts state law causes of action for injuries allegedly caused by those devices. …
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Illinois Federal Court Finds That Arbitrator Cannot Compel Prehearing Depositions of Non-Parties Under the Federal Arbitration Act
By Troutman Pepper Locke on
Plaintiffs Matria Healthcare LLC f/k/a Matria Healthcare, Inc. (“Matria”) moved to compel the depositions of Angus M. Duthie and Thomas Hannon, non-parties in an arbitration that was pending before the American Arbitration Association.
Illinois Federal Court: “Related Wrongful Acts” Provision Applies Only To Limits Of Liability And Does Not Limit Duty To Defend
By Troutman Pepper Locke on
A federal district court in Illinois recently held that a “related wrongful acts” provision did not affect an insurer’s duty to defend even though the “wrongful acts” in question indisputedly “related” to wrongful acts that occurred prior to the policy’s retroactive date. …
Read More Illinois Federal Court: “Related Wrongful Acts” Provision Applies Only To Limits Of Liability And Does Not Limit Duty To Defend
Federal Appeals Court Vacates Summary Judgment Decision Where Conflicting Evidence Regarding Principal Place Business of Insured Precluded Determinative Choice of Law Decision
The United States Court of Appeals for the Seventh Circuit recently remanded a choice-of-law determination to the district court for further proceedings because there was conflicting evidence about the principal place of business of one insured and the conflict could not be resolved on the paper record.
Read More Federal Appeals Court Vacates Summary Judgment Decision Where Conflicting Evidence Regarding Principal Place Business of Insured Precluded Determinative Choice of Law Decision
Seventh Circuit Strictly Construes Consent To Settlement Provision
By Troutman Pepper Locke on
The Seventh Circuit Federal Court of Appeals recently held that an insurer had no liability for its insured’s settlement of noticed claims where the insured had failed to seek or obtain consent to that settlement.
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Illinois Federal Court Takes Restrictive View of Government Contractor Immunity Defense
By Troutman Pepper Locke on
The United States District Court for the Southern District of Illinois recently adopted a restrictive view of the government contractor immunity defense when it remanded an asbestos-related lawsuit to Illinois state court for lack of federal subject-matter jurisdiction. …
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Reinsurer Argues that California Law Prohibits Tort Recovery for Bad Faith in the Reinsurance Context
By Troutman Pepper Locke on
On March 17, 2008, in a case pending in the United States District Court for The Central District of California, California Joint Power Insurance Authority v. Munich Reinsurance America, Inc., Case No. CV08-00956, Munich Reinsurance America, Inc. (“Munich Re America”) filed a motion to dismiss the count of the complaint filed by plaintiff California Joint Power Insurance Authority (“CJIPA”) seeking tort and punitive damages for an alleged breach of the implied covenant of good faith and fair dealing under the reinsurance agreement entered into between the parties.