7th Circuit: Plaintiff did not pass three-part Section 155 test

Federal Courts

By Jay S. Judge

Jay S. Judge, a name partner of Judge, James, Hoban & Judge LLC in Park Ridge, is a defense attorney who specializes in trials, appeals and insurance coverage. Judge graduated with honors from The John Marshall Law School and served as editor-in-chief of the school’s law review.

Posted May 25, 2021 12:27 PM

Today’s 7th U.S. Circuit Court of Appeals case provides an excellent primer on Section 155 (215 ILCS 5/155) and its extra-contractual remedy for insureds when their insurance company vexatiously and unreasonably delays providing coverage.The 7th Circuit explains that a Section 155 award is available only when one of three coverage issues remain pending and unresolved: (1) the insurer’s liability is unresolved; (2) the amount of the loss payable is unresolved and (3) whether the delay in paying was unresolved.In Creation …

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