No ‘common fund’ created where insurer takes contractual setoff

Insurance Matters

By Don R. Sampen

Don R. Sampen is a member of the appellate practice group of Clausen, Miller P.C., where he focuses on appellate, commercial and insurance-related litigation. He also teaches insurance law at Loyola University Chicago School of Law. His column appears twice monthly.

Posted July 28, 2020 11:38 AM

The 2nd District Appellate Court, in the context of underinsured motorist coverage, recently held that the common fund doctrine did not apply to allow an attorney to recover as fees a portion of setoffs from policy limits arguably made possible by the efforts of the insured’s attorney. The case is Moruzzi v. CCC Services, Inc., 2020 IL App (2d) 190411 (June 10). The insured, Sandra Moruzzi, and her attorney, Kaiser Law, were represented by Lindsay Pickett & Postel LLC. Carlson Law Offices represented the insurer, CCC …

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