Court Opinion

ID: 9742765
Source: CourtListenerOpinion
Date Created: 2023-08-26 21:19:58.156556+00
Date Added: 2024-06-11T07:24:36.501317
License: Public Domain

JUSTICE HARRISON, concurring in part and dissenting in part: In Consolidated Rail Corp. v. Liberty Mutual Insurance Co. (1981), 92 Ill. App. 3d 1066, 1072-73, 416 N.E.2d 758, this court specifically held that “[a]n insurer has the duty to assume the defense of its insured whenever there is a potential for coverage,” and that the insurer does not satisfy this duty merely by filing a declaratory judgment action and then refusing to participate in the litigation. We subsequently reaffirmed our adherence to this position in County of Massac v. United States Fidelity & Guaranty Co. (1983), 113 Ill. App. 3d 35, 39-40, 446 N.E.2d 584. I see no reason why the holdings of these cases should not be applied here, where it is undisputed that Aetna, while alleging in its answer to Marsch’s declaratory judgment action that its policy does not afford coverage, has completely refused to defend the underlying lawsuit. Accordingly, since proper application of the rule set forth in Consolidated Rail and County of Massac would operate to estop Aetna from arguing noncoverage with respect to either count V or VII, the reversal of the judgment with respect to count VII is incorrect.