Illinois State Bar Ass’n. Mut. Ins. Co. v. Brooks, Adams & Tarulis

2014 IL App (1st) 132608 (Ill. App., 2014)

Words & Phrases

Rescission

Trial Judge

Hon. MaryAnne Mason

Appellate Judge

Justice Neville

Holding

No rescission where misrepresentation in initial application was not repeated in renewal application.

Fact Summary

The trial court granted rescission of two insurance policies based on an alleged misrepresentation in the application for the first policy. The appellate court held that a misrepresentation in an initial application does not justify rescission of a renewal of the policy, where the insured made no misrepresentation in the application for renewal and neither the new policy nor the application for renewal incorporated the initial application for insurance. The court also found that a client makes a claim against an attorney when the client requests relief from the attorney for alleged errors or misconduct. When a client made a claim against his attorney in November 2002, and filed a legal malpractice lawsuit based on the same misconduct in 2005, the attorney made no misrepresentation when he told a potential insurer, in December 2007, that no claims had been made against him within five years of the date of his application. Therefore, the court reversed the decision for rescission of both insurance policies.

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