Certain Underwriters at Lloyd's, London v. Abbott Laboratories

2014 IL App (1st) 132020 (Ill. App., 2014)

Words & Phrases

Rescission

Trial Judge

Richard J. Billik and Thomas R. Mulroy

Appellate Judge

Justice Delort; Hoffman and Connors concurred.

Holding

Underwriters could not prove that Abbott intended to materially misrepresent the regulatory status of newly acquired subsidiary.

Fact Summary

Information regarding Synthroid's regulatory status was publically available and Abbott sent information immediately.  Also, Abbott's policies automatically covered the subsidiary purchase, only matter remaining to be determined was the amount of the additional premium.

Court also found Underwriters waived rescission by waiting over a year to follow up request for information.

Section 155 claim denied because bona fide issue existed with regard to material misrepresentation.

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