An Illinois Appellate Court has taken the next step in limiting the role of courts in insurance arbitrations. In Klehr v. Illinois Farmers Insurance Co., No. 1-12-1843 (Ill. App. Ct., First Dist. Jan. 22, 2013), the plaintiff tried to obtain interlocutory review of an arbitrator’s discovery order by filing an action for a declaratory judgment. Addressing what it declared to be a question of first impression nationally, the Appellate Court dismissed the action, on the ... Keep Reading »
Arbitration
Be Careful what you Incorporate: Insurer Bound by Insured’s Arbitration Agreement
When an insurance policy relates to particular contractual obligations of an insured, having the policy specifically identify the underlying contract can help define the insurer’s obligations with precision. But the reference needs to be precise, too. In a recent Fourth Circuit case, an insurer’s performance bond recited the fact that the principal had entered into a construction subcontract, and it stated that the “subcontract is by reference made a part hereof.” ... Keep Reading »