Zurich American Insurance Co. v. Infrastructure Engineering, Inc.

2023 IL App (1st) 230147 (Ill. App., 2023)

Words & Phrases

Subrogation: In General

Trial Judge

Patrick J. Sherlock

Appellate Judge

Howse

Holding

Builder's risk insurer could pursue contractual subrogation action against subcontractor pursuant to express contractual subrogation clause.

Fact Summary

Plaintiff, Zurich American Insurance Company (Zurich), issued a builder’s risk insurance policy to insure a building during its construction. Defendant Infrastructure Engineering, Inc. (Infrastructure Engineering), was a subcontractor on the construction project who was hired to install a system for collecting rainwater. A rainstorm occurred while the building was still under construction, and the basement of the building flooded, causing significant damage. Plaintiff paid out a claim to CMO, the general contractor, in accordance with the policy it issued. Plaintiff, as subrogee of CMO and the owner, a community college, then sued defendant, alleging defendant caused the water damage. Defendant moved for summary judgment, arguing that plaintiff was not entitled to subrogate for the building owner. The trial court agreed, and it granted judgment in defendant’s favor. Plaintiff now appeals, arguing that the insurance policy entitles it to a right of subrogation. For the following reasons, we reverse and remand for further proceedings.

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