Insurer’s effort to avoid duty on ‘illegal’ argument fails

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 May 5, 2016 2:46 PM

A new decision from the 4th District Appellate Court refused an attempt to avoid a duty to defend on the ground that a suit against a policyholder sought “uninsurable” disgorgement of ill-gotten gains.In Illinois Municipal League Risk Management Association v. City of Genoa, the court rejected the argument because the underlying suit did not seek return of money paid. 2016 IL App (4th) 150550.The opinion was written by Justice M. Carol Pope with Justices Thomas M. Harris Jr. and Thomas R. Appleton, concurring …

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