National Union Fire Insurance v. American Motorists Insurance, 707 F.3d 797

This diversity case governs Illinois law and arises from a 2002 scaffold accident at the John Hancock Center, causing three deaths and multiple injuries.
Shorenstein entities owned/managed the building; MCA contracted for design/oversight and procured AMICO insurance covering named insureds including Shorenstein entities.
Tort suits settled in 2006 for $8.7 million; several additional Shorenstein affiliates were released in the settlement.
AMICO disputed indemnity, arguing only some Shorenstein entities were insured; the district court initially denied full AMICO reimbursement.
National Union paid settlement costs as subrogee and sought reimbursement, with AMICO denying full liability.
The district court held that all four (later five) Shorenstein defendants were to share settlement liability, and denied prejudgment interest; on appeal the court vacated and remanded for recomputation.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether all Shorenstein defendants contributed to settlement liability	Shorenstein argues all eight affiliates contributed, so AMICO liable for full indemnity.	AMICO contends only insured entities should be liable and non-insured affiliates should not reduce AMICO's share.	Remand to recompute with correct set of contributing defendants
Whether Shorenstein Realty Services, L.P. was covered by AMICO	AMICO coverage should extend to Shorenstein Realty Services as Owner's Agent per contract/manual.	AMICO denied coverage for that entity.	Covered; AMICO liable for its share as Owner's Agent
Whether prejudgment interest is warranted	Interest should be awarded if readily calculable at suit filing.	Uncertain calculability; interest not warranted.	Denied; not readily calculable before judgment
Whether targeted tender doctrine affected AMICO's indemnity	Shorenstein could pursue indemnity from AMICO as a principal insurer; tender to National Union was a back-up.	Targeted tender doctrine limits indemnity when insured seeks from non-targeted insurer.	Tender to AMICO permissible; do not bar indemnity

Harbor Ins. Co. v. Continental Bank Corp., 922 F.2d 357 (7th Cir. 1990) (allocation of settlement liability for uninsured defendants)
Owens Corning v. National Union Fire Ins. Co., 257 F.3d 484 (6th Cir. 2001) (excess due to uninsured defendants should be allocated to uninsured)
Patrick Engineering, Inc. v. Old Republic General Ins. Co., 973 N.E.2d 1036 (Ill. App. 2012) (per-claim separate insured coverage under policy)
St. Katherine Ins. Co. Ltd. v. Insurance Co. of North America, Inc., 11 F.3d 707 (7th Cir. 1993) (insurer's coverage per insured entity; separate interests)
U.S. Fidelity & Guaranty Co. v. Globe Indemnity Co., 327 N.E.2d 321 (Ill. 1975) (Ill. law on insurer indemnity and coverage)
Kajima Construction Services, Inc. v. St. Paul Fire & Marine Ins. Co., 879 N.E.2d 305 (Ill. 2007) (targeted tender doctrine in multiple-insurer contexts)
John Burns Construction Co. v. Indiana Ins. Co., 727 N.E.2d 211 (Ill. 2000) (allocation and indemnity considerations among insurers)
Alcan United, Inc. v. West Bend Mutual Ins. Co., 707 N.E.2d 687 (Ill. App. 1999) (targeted tender doctrine context)
Federal Ins. Co. v. Binney & Smith, Inc., 913 N.E.2d 43 (Ill. App. 2009) (Illinois Appellate treatment of insurance coverage issues)
Santa’s Best Craft, LLC v. St. Paul Fire & Marine Ins. Co., 611 F.3d 339 (7th Cir. 2010) (readiness of calculability for prejudgment interest)