AMCO Insurance Co. v Erie Insurance Exchange
2016 IL App (1st) 142660 (Ill. App., 2016)Words & Phrases
Equitable ContributionTrial Judge
David AtkinsAppellate Judge
HallHolding
Where first insurer sought equitable contribution from second insurer, claim was barred by insured's failure to give timely notice under second insurer's policy.Fact Summary
The plaintiffs, numerous individuals who were diagnosed with mesothelioma and lung cancer, filed a complaint for declaratory judgment against numerous defendants, including Employers Insurance Company of Wausaw, Travelers Casualty and Surety Company, and TIG Insurance Company (collectively, Defendant Insurers). The Defendant Insurers filed motions to dismiss. The circuit court granted the dismissal, finding that the action was barred by section 12.80 of the Business Corporation Act of 1983 (Act) (805 ILCS 5/12.80 (West 2012)) and the prohibition on direct actions against insurers. On appeal, the plaintiffs argue that the circuit court erred when it dismissed the complaint. We affirm.
Doctrine of actual notice did not apply where second insurer defended under reservation of rights and even if it did, the 16-month delay between the filing of Smith's original complaint and the time Erie received actual notice was unreasonable as a matter of law.