2012 IL App (4th) 110289
Ill. App. Ct.2012Background
- Buckley filed a wrongful-death suit against Burton for the May 11, 2008 fatality; Burton later convicted of leaving the scene of an accident and failing to report the death.
- Farmers Automobile Insurance Association sued Burton and Buckley in a declaratory-judgment action seeking to determine coverage and defense obligations.
- Burton did not notify Farmers of the accident until July 8, 2010, more than 11 months after knowledge of the State's investigation and after his arrest/arraignment.
- The policy required prompt notice of an accident or loss, including names and addresses of injured persons and witnesses; Farmers defended Buckley’s claim subject to reservation of rights.
- The trial court granted Farmers’ summary judgment, finding Burton’s notice was not reasonable; Burton and Buckley appealed, and the appeals were consolidated; the appellate court affirmed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Was Burton's late notice reasonable under the policy? | Burton breached notice condition; timely notice essential | Burton’s asserted innocence and timing excuses notice delay | Yes; notice was unreasonable; judgment for Farmers affirmed |
Key Cases Cited
- Barrington Consolidated High School v. American Insurance Co., 58 Ill.2d 278 (1974) (notice is a valid prerequisite to coverage)
- Northbrook Property & Casualty Insurance Co. v. Applied Systems, Inc., 313 Ill.App.3d 457 (2000) (notice provisions are conditions precedent to coverage)
- Country Mutual Insurance Co. v. Livorsi Marine, Inc., 222 Ill.2d 303 (2006) (breach of notice clause defeats insured’s coverage)
- Livorsi Marine, Inc. v. Country Mutual Insurance Co., 222 Ill.2d 303 (2006) (extent of notice reasonableness factors)
- West American Insurance Co. v. Yorkville National Bank, 238 Ill.2d 177 (2010) (consideration of multiple factors for reasonable notice; prejudice not required)
- American Country Insurance Co. v. Bruhn, 289 Ill.App.3d 241 (1997) (fear of criminal prosecution does not excuse notice obligation)
- American Standard Insurance Co. of Wisconsin v. Slifer, 395 Ill.App.3d 1056 (2009) (innocence does not excuse late notice; delay attributable to insured negligence)