Lenex Steel Co. v. Rockhill Ins. Co. (Ill. Cir. Ct.)

The insured was obligated to pay a $1.2 million settlement of an underlying bodily injury claim. The insured and one of its primary insurers argued that "additional insured" coverage applied under the client's umbrella policy, and that the client was therefore obligated to contribute to the settlement. Adopting BatesCarey LLP's reasoning, an Illinois state court held that the client umbrella insurer had no obligation to contribute to the settlement because all primary coverage, including the insured's own primary coverage, was not exhausted. The court not only granted summary judgment, but at BatesCarey LLP's request it also sanctioned the insured and its counsel for pursuing a frivolous lawsuit by awarding the client its reasonable attorneys' fees and costs.