Stonegate Ins. Co. v. All City Towing, Inc.

2024 IL App (1st) 221769 (Ill. App., 2024)

Words & Phrases

Duty To Defend: In General

Trial Judge

Celia G. Gamrath and Thaddeus L. Wilson

Appellate Judge

Lampkin

Holding

In an insurance coverage matter, the plaintiff insurance company sought declaratory relief regarding its duty to defend and indemnify its insured, a towing company, in a matter arising out of a physical altercation between one of the insured’s employees and a customer. The trial court entered summa¬ry judgment in favor of the insured on both questions and plaintiff appealed. The ap¬pellate court affirmed, finding that the trial court did not err in finding that plaintiff had a duty to defend and rejecting its arguments that the incident giving rise to the claim did not fall under the definition of “garage operations,” finding instead that the trial court did not err when it concluded that the allegations of negligent hiring fell within the policy definition. The appellate court also rejected the insurance company’s argu¬ment that the “expected or intended injury” policy exclusion applied or that the insured failed to give reasonable notice of the claim. The appellate court likewise found no error in the trial court’s determination that the insurance company had a duty to indem¬nify. Finally, the appellate court noted that plaintiff’s brief contained multiple examples of misstated facts and that this, along with an argument regarding the presumed accent of a witness, undermined the plaintiff’s credibility with the court and were contrary to expectations of professionalism.

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