Motion For Summary Judgment Granted

August 23, 2017

Associate Anthony Parker of Patton & Ryan secured a tremendous victory when the Chief Judge of Kane County, Illinois granted our Motion for Summary Judgment in a $1M subrogation/coverage matter. Plaintiff’s complaint, filed in 2014, alleged over $1M in property damage was caused when a pipe carrying a methanol solution broke and spilled thousands of gallons of the liquid into the building. Plaintiff provided property insurance at the time of the leak.

Plaintiff’s complaint sought relief from the contractor responsible for installing the pipe under a theory of equitable subrogation. At issue was whether the insurer had a contractual right to subrogation. Prior to construction of the building, all parties entered into an Owner Controlled Insurance Program (OCIP) and agreed to waive all rights to subrogation.

Plaintiff argued the subrogation waiver terminated at the completion of construction and a Builder’s Risk exclusion contained within the insurance policy excluded coverage and therefore, the subrogation waiver did not apply.

Defendant’s Motion for Summary Judgment argued Plaintiff was not entitled to bring their claim because: (1) the language of the Subrogation Waiver applied to any and all claims and was not limited in scope; (2) Builder’s Risk exclusions only apply during the construction period; and (3) an exception to the Builder’s Risk exclusion applied and thus, the Subrogation Waiver was still in effect at the time of the 2012 liquid leak.

Following oral arguments by attorney Parker, the court agreed with our position and the motion was granted. Plaintiff’s last demand was $680,000.