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Commonwealth Insurance Co. et al. v. Stone Container Corp., (N.D. Ill.)

The court's ruling in favor of IRI was affirmed by the Seventh Circuit. See Commonwealth Ins. Co. v. Stone Container Corp., 351 F.3d 774 (7th Cir. 2004). Chief District Judge of the Northern District of Illinois, Charles P. Kocoras, granted summary judgment in favor of our client, Industrial Risk Insurers ("IRI"), with respect to Stone Container Corporation's ("Stone") claim for coverage arising from the rupture/explosion of a pulp digester. Stone Container claimed that IRI was obligated to pay at least $28.4 million plus interest under the IRI policy The court held that coverage for the event was clearly and unambiguously excluded by language in the policy which IRI issued to Stone. The court also rejected Stone's claim that the policy should be reformed to include coverage for the event. In addition, the court granted summary judgment with respect to Stone's claim that IRI violated the Illinois Consumer Fraud Act with respect to representations made in IRI's 1983 Pulp and Paper Brochure.

Stone Container also pursued claims for smaller amounts against other insurers who were parties to the suit. This litigation was hotly contested with respect to every major issue, and there was extensive briefing by all parties with respect to summary judgment motions and related motions to strike. Judge Kocoras denied all motions for summary judgment with the exception of IRI's motion.

© 2008 Zelle Hofmann/ Not Certified by the Texas Board of Legal Specialization
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