1st District ruling reaffirms coverage standard for settlements

Policyholder Perspective

By Stanley C. Nardoni

Stanley C. Nardoni practices in the insurance recovery group of Reed, Smith LLP. A graduate of DePaul University College of Law and former law clerk to an Illinois Supreme Court justice, he also holds an LL.M. in insurance law from the University of Connecticut School of Law. He welcomes comments to his columns at snardoni@reedsmith.com.

Posted July 17, 2014 2:30 PM

A recent 1st District Appellate Court decision provides important guidance on the rules for indemnification where a settlement resolves both covered and uncovered claims. In Rosalind Franklin University of Medicine and Science v. Lexington Insurance Co., 2014 IL App (1st) 113755, the court reaffirmed the holding in Commonwealth Edison Co. v. National Union Fire Insurance Co., 323 Ill.App.3d 970 (1st Dist. 2001), that insurers are responsible for the full amount of such a settlement if the covered claim was at least …

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