Seventh Circuit Court of Appeals Decision Stresses Insurers Denying Coverage for Class-Action Liability Cases Should Intervene Early

A recent Seventh Circuit Court of Appeals decision emphasizes that an insurer who denies coverage to its insured should take every step to protect its own interests in the liability action as soon as possible, otherwise it may be subjected to a collaborative settlement between the insured and the plaintiff.  In C.E. Design, Ltd. and…

My Co-Defendant Settled a Personal Injury Claim. How Does that Affect Me?

When a plaintiff reaches a settlement of a personal injury claim against one of multiple defendants, how does that settlement affect the remaining defendants? The answer will depend on which state’s laws govern. In Illinois, the remaining defendant may recover dollar-for-dollar up to the settlement amount if he otherwise complies with the statutory requirements of…

Dueling Dismissals: Voluntary Dismissal vs. Motion to Dismiss

In years past, plaintiffs have strategically used voluntary dismissals to avoid dispositive motions, gain time to amend pleadings, or even circumvent statutes of limitations. It was not uncommon for plaintiffs to respond to a motion to dismiss by voluntarily dismissing the defendant until they built a better case. In response to these practices, the Illinois…

Illinois Supreme Court Holds that Plaintiff is not so Easily Distracted in New Open and Obvious Case

A common fact scenario in a premises liability case is the plaintiff who is injured tripping over a large box, pallet, basket, display, etc. while shopping at the defendant’s retail store. When a defense attorney gets a case like this, the first thing that should come to mind is: this is “open and obvious.” The…

Illinois Employers Now Prohibited from Inquiring into the Criminal History of an Applicant Until After They Are Deemed Qualified and Selected for an Interview

The New Year in Illinois will bring several changes to Illinois law, including some significant changes with respect to the pre-employment criminal background screening of applicants by prospective employers. As we covered in a previous blog post, an employer is already prohibited from inquiring into or considering the fact that an applicant was arrested or…

Characteristic signs of plaintiff-insured collusion, which may work to extinguish an insurer’s obligation to indemnify the insured

When an insurer denies policy coverage for a suit or even issues a reservation of rights and files a declaratory judgment action, the insured occasionally settles directly with the third-party claimant or plaintiff for a specified amount that may only be collected from the insurance proceeds if coverage is found.  Two recent Illinois appellate court…