Illinois State Bar Ass’n. Mut. Ins. Co. v. Law Office of Tuzzolino and Terpinas

2015 IL 117096 (IL. 2015)

Words & Phrases

Rescission

Trial Judge

Hon. Rita Novak

Appellate Judge

Justice Freeman

Holding

The common law doctrine of the “innocent insured” did not prevent rescission as to one member of a two-man law firm whose policy was properly rescinded under the Insurance Code for the other attorney’s misrepresentation in applying for renewal of the firm’s coverage.

Fact Summary

 

Plaintiff Illinois State Bar Association Mutual Insurance Company (ISBA Mutual) filed a complaint for rescission and other relief against the Law Office of Tuzzolino & Terpinas (firm); Sam Tuzzolino and Will Terpinas, Jr., partners in the firm; and Anthony (“Antonio”) Coletta, the plaintiff in an underlying legal malpractice action against Tuzzolino, Terpinas and the firm. In its complaint, ISBA Mutual sought rescission of the legal malpractice insurance policy it had issued to the firm, alleging that Tuzzolino’s material misrepresentation on an ISBA Mutual renewal application induced ISBA Mutual to issue the policy. Ruling on motions for summary judgment, the circuit court of Cook County granted ISBA Mutual’s motion and rescinded the policy. Terpinas and Coletta appealed that judgment, arguing the rescission should not apply to Terpinas. The appellate court agreed and reversed the judgment of rescission as to Terpinas. 2013 IL App (1st) 122660, ¶¶ 38, 46. This court allowed ISBA Mutual’s petition for leave to appeal. Ill. S. Ct. R. 303 (eff. June 4, 2008); R. 315 (eff. July 1, 2013). We now reverse the judgment of the appellate court and affirm the judgment of the circuit court.

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