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United States District Court for the Northern District of Illinois, Eastern Division
March 30, 2022, Decided; March 30, 2022, Filed
No. 20 C 3665
MEMORANDUM OPINION AND ORDER
Defendant Carnagio Enterprises, Inc. ("Carnagio"), is a McDonald's franchisee insured by both Plaintiff American Family Mutual Insurance Company, S.I. ("American Family") and Plaintiff Austin Mutual Insurance Company ("Austin Mutual") (collectively "Plaintiffs"). In early 2019, Defendant Angela Karikari ("Karikari") filed a class action lawsuit against Carnagio, alleging violations of Illinois's Biometric Information Privacy Act, 740 Ill. Comp. Stat. 14/1 et seq. ("BIPA"). Carnagio informed the insurance companies of the lawsuit and requested coverage.1 Plaintiffs then brought this suit, seeking a declaratory judgment that violations of BIPA are excluded [*3] under the policies they had issued to Carnagio. As a result, Plaintiffs contend that they have no duty to defend Carnagio in Karikari's suit.
This Court now addresses the parties' cross-motions for summary judgment. For the reasons stated below, Plaintiffs' motion for summary judgment is granted in part and denied in part, and Karikari's motion for summary judgment is granted.
A. Carnagio's Insurance Policies
Carnagio operates thirteen McDonald's restaurant franchises in Illinois. Pls.' Statement Material Fact ("PSOF") ¶ 31, ECF No. 76. From March 1, 2015, to March 1, 2020, all of Carnagio's McDonald's locations were insured under policies issued by American Family. Id. ¶¶ 7-11. From March 1, 2020 to March 1, 2021, Carnagio's restaurants were covered under Businessowners' Liability Insurance policies issued by Austin Mutual. Id. ¶ 12. Each of these policies promises coverage for "the sums that the insured becomes legally obligated to pay as damages because of 'bodily injury', 'property damage' or 'personal and advertising injury' to which this insurance applies." Id. ¶ 15. The policies further acknowledge that American Family and Austin Mutual have a duty to defend Carnagio [*4] "against any 'suit' seeking damages for" those covered harms. Id.
The policies define "personal and advertising injury" as:
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2022 U.S. Dist. LEXIS 58358 *; 2022 WL 952533
AMERICAN FAMILY MUTUAL, INSURANCE COMPANY, S.I. and AUSTIN MUTUAL INSURANCE COMPANY, Plaintiffs, v. CARNAGIO ENTERPRISES, INC., an Illinois corporation, and ANGELA KARIKARI, individually and on behalf of all others similarly situated, Defendants.
coverage, Disclosure, insured, personal information, advertising injury, damages, lawsuit, words, violations, biometric, policies, ejusdem generis, employment-related, summary judgment, CAN-SPAM Act, confidential, fingerprints, allegations, statutory violation, ambiguity, insurance policy, regulating, employees, privacy, reasons, canon, insurance company, practices, noscitur a sociis, right to privacy