Michele Oshman obtained summary judgment for her client in a battle of insurance companies. The dispute arose as a result of an auto accident, where one of the drivers involved had an expired license. That driver's insurance carrier denied coverage based on a "reasonable belief" exclusion in its policy. Later, it appointed defense counsel, who spoke no Spanish, for its insured, who spoke little English.
The insurance company later filed a declaratory judgment action seeking a declaration of no coverage against its insured, as well as the driver of the other vehicle involved in the auto accident and his insurer.
The judge in Cook County Chancery Court found that because the insurance company did not reserve the right to defend its insured before it appointed defense counsel and then filed the declaratory judgment action, it was estopped to deny coverage. Certainly, this result reinforces the need to ensure that claims are handled meticulously and in accordance with the rules of the court.
