Much Shelist

Breaking News: Policyholders' Insurance Coverage Group Wins Significant Case before
Illinois Supreme Court

By Neil B. Posner

On November 30, 2006, the Illinois Supreme Court issued its opinion in Valley Forge Insurance Company v. Swiderski Electronics, Inc., a case that has been closely watched by policyholders and the insurance industry throughout the country. Much Shelist is proud to report to our clients and friends that the firm's Policyholders' Insurance Coverage department won the day for policyholders in this case.

This case arose out of a lawsuit over an unauthorized fax (sometimes referred to as a "blast fax" or "junk fax"), in violation of the Telephone Consumer Protection Act (TCPA). The policyholder tendered that lawsuit to his insurance company, which refused to defend him. A lawsuit over insurance coverage followed. At issue in the coverage case was how undefined terms in an insurance policy should be interpreted. Much Shelist argued that such terms should be given their plain, ordinary and popularly understood meanings. The Illinois Supreme Court agreed, which means that an ordinary policyholder's understanding of an undefined term will be what controls.

Anthony C. Valiulis and Joanne A. Sarasin, both principals in the firm's Litigation & Dispute Resolution practice group, wrote the legal brief, while Tony argued the case before the Illinois Supreme Court. The firm congratulates Tony and Joanne on this extremely important victory for policyholders in Illinois and across the United States.

Neil B. Posner, head of the firm's Policyholders' Insurance Coverage department, focuses his legal practice in the area of insurance coverage, with specific emphasis on insurance recovery and dispute resolution, risk management, loss prevention and cost containment. His clients include a range of public and private companies, organizations, boards of directors, individual officers and other policyholders. Neil can be reached at 312.521.2623 or nposner@muchshelist.com.


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The Litigation & Counseling Alert contains material of general interest and should not be construed as legal advice or a legal opinion on any specific facts or circumstances. Under professional rules, this alert may be regarded as advertising material.

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