TRIBUNE CO. v. ALLSTATE INS. CO.

No. 1-97-2264.

715 N.E.2d 263 (1999)

306 Ill. App.3d 779

239 Ill.Dec. 818

TRIBUNE COMPANY and Sentinel Communications Company, Plaintiffs-Appellants, v. ALLSTATE INSURANCE COMPANY, Successor by Merger to Northbrook Excess & Surplus Insurance Company, formerly Northbrook Insurance Company; American Insurance Company, American Reinsurance Company, Associated International Insurance Company, Certain Underwriters of Lloyd's, London, Columbia Casualty Company, Continental Casualty Company, Employers Insurance of Wausau, Executive Re Indemnity Inc. (formerly) Eric Reinsurance Company, formerly American Excess Insurance Company First State Insurance Company, The Home Insurance Company, Insurance Company of North America, Lexington Insurance Company, North Star Reinsurance Corporation, Stonewall Insurance Company, and Zurich Insurance Company, Defendants-Appellees.

Appellate Court of Illinois, First District, Second Division.

Opinion Modified on Denial of Rehearing August 10, 1999.


Attorney(s) appearing for the Case

Jones, Day, Reavis & Pogue, Chicago (Paul W. Schroeder and Anastasia Katinas, of counsel), for appellants.

Caron McCormick Constants & Goldberg, Chicago (Nancy K. Caron and Mariola K. Weithers, of counsel), for American Ins. Co.

Cohn & Baughman, Chicago (William M. Cohn, Michael R. Orlando, of counsel), for Ins. Co. of North America.

Bates Meckler Bulger & Tilson, Chicago (Michael M. Marick and Frederick W. Stein), for Zurich Ins. Co.

John Y.E. Lee, Michael A. Chabraja, Oppenheimer Wolff & Donnelly, Chicago, for American Re-Insurance Co. and Executive Re Indemnity Inc.

David E. Trainor, Brett L. Warning, Tressler, Soderstrom, Maloney & Preiss, Chicago, for Allstate Ins. Co., solely as successor-in-interest to Northbrook Excess and Surplus Ins. Co., formerly known as Northbrook Ins. Co.

David E. Neumeister, James K. Horstman, Douglas W. Lohmar, Lloyd E. Williams, Jr., Williams & Montgomery, Chicago, for The Home Ins. Co.

James F. Martin, Skadden, Arps, Slate, Meagher & Flom, Chicago, for North Star Reinsurance Corp.

Christopher R. Barth, Adam H. Fleischer, Blatt, Hammesfahr & Eaton, Chicago, for Certain Underwriters at Lloyd's, London, and Certain London Market Ins. Companies.

Michael J. Sehr, Fedota Childers & Rocca, Chicago, for Continental Cas. Co. and Columbia Cas. Co.

Michael Patrizio, Dowd & Dowd, Chicago, for Associated Intern. Ins. Co.

Jeffrey L. Kaser, Burditt & Radzius, Chtd., Chicago; Michael D. Gallagher, Jeffery N. German, Michael K. Willison, German, Gallagher & Murtagh, Philadelphia, PA, for Stonewall Ins. Co.

Wayne S. Karbal, Vedder, Price, Kaufman & Kammholz, Chicago, for First State Ins. Co.

Richard M. Hagstrom, Daniel S. Weiss, Zelle & Larson LLP, Minneapolis, MN; Jeffrey E. Margulis, Lovell White Durrant, Chicago, for Employers Ins. of Wausau.

James T. Ferrini, Ilene M. Korey, Melinda S. Kollross, Clausen, Miller P.C., Chicago, for Lexington Ins. Co.


MODIFIED UPON DENIAL OF REHEARING

Justice McNULTY delivered the opinion of the court:

Three parties filed separate lawsuits against Sentinel Communications Company, a subsidiary of Tribune Company. After Tribune and Sentinel sent notice of the lawsuits to their primary and excess general liability insurers, the insurers denied responsibility for defense of the suits or indemnification of Tribune and Sentinel. Tribune and Sentinel then sued all of their general...

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