COURT DECISIONS

Rough Notes, Aug 2004

The trial court found in favor of National Fire.

The Appellate Court of Illinois affirmed. In reaching its decision, the appellate court stressed the fact that the Raphael complaint alleged damages only at the 7501 premises. According to the court, Ali & Sons' willingness to admit to more contamination than was alleged did not change the fact that the complaint did not allege any migration of pollutants onto other premises.

In addition, Ali & Sons cited no authority for the proposition that, as lessee, it could trespass upon the premises it leased. Even if the alleged trespass were construed as a "wrongful entry" within the meaning of the policy, the trespass could occur only after Ali & Sons' legal right to possess the premises ended (June 30, 2001). This would have been eight years after the policy period ended. Thus, the court found National Fire did not owe a duty to defend or indemnify Ali & Sons in the Raphael lawsuit because the personal injury provisions did not apply.

The decision of the lower court in favor of National Fire was affirmed.

National Fire and Indemnity Exchange v. Ali & Sons, Company-No. 1-03-1091-Appellate Court of Illinois, First District, Sixth Division-January 16, 2004-803 North Eastern Reporter 2d 636.