Astor Plaza Condominium Association, et al. v Travelers Casualty and Surety Company of America and Merrimack Fire Ins. Co

In February 2015, The Jenkins Law Group won a $716,000 judgment after a bench trial in a declaratory judgment suit involving an insurance company’s refusal to defend or to indemnify individual officers and directors of a condominium association, in Astor Plaza Condominium Association, et al. v Travelers Casualty and Surety Company of America and Merrimack Fire Ins. Co. The Jenkins Law Group’s clients were officers and directors of a condominium association who had been sued by a unit owner for various claims. The Association had Directors and Officers Liability Coverage through Merrimack Fire Ins. Co. (“Merrimack”), but Merrimack refused to retain lawyers to defend the Association’s directors and officers in violation of its duty to defend under the insurance policy. After years of delay and vigorous opposition by the insurance company, the judge found in favor of the individual officers and directors, finding that Merrimack had breached its duty to defend the individuals, and additionally found that the insurance company had engaged in vexatious and unreasonable delay, therefore entitling The Jenkins Law Group’s clients to an award of attorney fees and other sanctions against the insurance company under section 155 of the Illinois Insurance Code.