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ILLINOIS OFFICIAL REPORTS
Appellate Court

Pekin Insurance Co. v. Precision Dose, Inc., 2012 IL App (2d) 110195

Appellate Court Caption

PEKIN INSURANCE COMPANY, Plaintiff-Appellee, v. PRECISION DOSE, INC., FRANK DARNELL, JAMES KLEINHEINZ, ROBERT KOOPMAN, WARREN SWANSON, JAMES ARTHUR, and DAVID ZOELLNER, as Shareholders of Xactdose, Inc., Defendants-Appellants.

District & No.

Second District Docket No. 2-11-0195 March 16, 2012 May 31, 2012 Summary judgment was properly entered for plaintiff insurer on its complaint seeking a declaratory judgment that it had no duty to defend its insured under a commercial general liability policy in an underlying action for breach of fiduciary duty that resulted in economic losses to plaintiffs, minority shareholders of a company, when defendants, as majority shareholders and directors of plaintiffs' company, formed and operated another company engaged in the same business, since plaintiff insurer lacked knowledge of true but unpleaded facts indicating that the claims were potentially covered, defendants breached the notice provision of the policy by failing to timely present the insurer with facts concerning the conduct at issue, if the amended underlying complaint had alleged that the new company "assumed operations" of the old company's business rather than its factory, the claim might have been within the advertising injury coverage, and the allegation that the new company assumed operations of the old company's factory was not an allegation of wrongful conduct by defendants.

Filed Rehearing denied Held
(Note: This syllabus constitutes no part of the opinion of the court but has been prepared by the Reporter of Decisions for the convenience of the reader.)

Decision Under Review Judgment Counsel on Appeal

Appeal from the Circuit Court of Winnebago County, No. 06-MR-514; the Hon. Eugene G. Doherty, Judge, presiding. Affirmed. Marc C. Gravino, Scott C. Sullivan, and Adam B.E. Lied, all of WilliamsMcCarthy LLP, of Rockford, for appellants. Robert Marc Chemers, Darryl L. Awick, and Richard M. Burgland, all of Pretzel & Stouffer, Chtrd., of Chicago, for appellee.

Panel

JUSTICE BURKE delivered the judgment of the court, with opinion. Justices McLaren and Birkett concurred in the judgment and opinion.

OPINION

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Illinois Law