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ASSOCIATED AVIATION UND., INC. v. AON CORP.

Nos. 1-01-4518, 1-02-2797, 1-02-2831.

800 N.E.2d 424 (2003)

344 Ill. App.3d 163

279 Ill.Dec. 356

ASSOCIATED AVIATION UNDERWRITERS, INC., Alberto-Culver Company, The American Insurance Company, Centennial Insurance Company, Continental Casualty Company, Federal Insurance Company, Fireman's Fund Insurance Company, Greenwich Insurance Company, Lumberman's Insurance Company and Sun Insurance Office of America, Plaintiffs-Appellees, v. AON CORPORATION and Aon Aviation, Inc., Defendants-Appellees. United States Aviation Underwriters, Inc. and United States Aircraft Insurance Group, Interveners-Appellees, v. Palwaukee Municipal Airport Commission, Village of Wheeling and City of Prospect Heights, Interveners-Appellants.

Appellate Court of Illinois, First District, Fourth Division.

Rehearing Denied December 17, 2003.

Attorney(s) appearing for the Case

Madsen, Farkas & Powen, L.L.C., Chicago (Brandt R. Madsen, Joshua D. Johnson and Victoria C. Priola, of counsel), and Dombroff & Gilmore, Ltd., New York, NY (Raymond Mariani, pro hac vice, of counsel), for Intervenors-Appellants.

Merlo, Kanofsky & Brinkmeier, Ltd., Chicago (Michael J. Merlo, Alan J. Brinkmeier and Donald G. Machalinski, of counsel), for Appellees AON Corporation and AON Aviation, Inc.

Adler, Murphy & McQuillen, Chicago (Michael G. McQuillen, Thomas S. Flanigon and Paula LoMonaco, of counsel), for Appellees Associated Aviation Underwriters, Inc., Alberto-Culver Company, and interested insurers.

Justice HARTMAN delivered the opinion of the court:

These appeals consider the propriety of a circuit court good-faith settlement finding in a subrogation setting. The unique circumstances of the appeals involve an insurer that issued a policy containing language which provided coverage not only for its principal insured, one of the settling parties, but caused the circuit court, post-settlement, to declare the same insurer the primary insurer also of the second settling...

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