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Mosaic Global Holdings, Inc. v. Employers Insurance Company of Wausau (Illinois)

IMC Global, n/k/a Mosaic Global Holdings, Inc. (“Mosaic”) sought more than $11 million from Employers Insurance Company of Wausau (“Wausau”) in a toxic tort insurance coverage case in Cook County, Illinois. Prior to trial, Zelle, Hofmann obtained summary judgment in favor of Wausau with respect to Mosaic’s claim that Wausau was estopped by its conduct from asserting any coverage defenses. After a two week bench trial and two successful motions for reconsideration, Zelle, Hofmann obtained a ruling from the trial court that Mosaic was not entitled to any coverage from Wausau for the claims at issue based upon the insured’s failure to provide timely notice of the underlying toxic tort litigation. The court rejected Mosaic’s contention that its delay in providing notice to Wausau was excusable since its predecessor had sent notice to the wrong insurer. The court also rejected Mosaic’s argument that one of the two Wausau policies at issue should be construed to eliminate the timely notice of suit requirement.

The trial court’s ruling in Wausau’s favor was affirmed on appeal by the Illinois Appeals Court. See IMC Global, n/k/a Mosaic Global Holdings, Inc. v. Continental Ins. Co. v. Employers Insurance Company of Wausau, 378 Ill.App.3d 797, 883 N.E.2d 68 (lst Dist. 2007). The Appeals Court ruled in Wausau’s favor that the timely notice of suit requirement was present in both of the Wausau policies at issue and that the insured’s delay in providing notice to Wausau of the underlying litigation was unreasonable and inexcusable under the circumstances of the case. Mosaic petitioned for leave to appeal to the Illinois Supreme Court based upon the arguments that the Illinois estoppel doctrine should be applied to bar Wausau from prevailing on its late notice defense and that Wausau was not entitled to prevail on its late notice defense because the timely notice of suit requirement was not present in one of the two Wausau policies at issue. The Illinois Supreme Court denied Mosaic’s petition.

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