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West Bend Mut. Ins. Co. v. Krishna Schaumburg Tan, Inc.

Appellate Court of Illinois, First District, Sixth Division

March 20, 2020, Decided

No. 1-19-1834

Opinion

PRESIDING JUSTICE MIKVA delivered the judgment of the court, with opinion.

Justices Connors and Harris concurred in the judgment and opinion.

OPINION

 [*P1]  Plaintiff West Bend Mutual Insurance Company (West Bend) appeals from the circuit court's partial grant of summary judgment in favor of defendants—its insured, Krishna Schaumburg Tan, Inc. (Krishna), and Klaudia Sekura, who sued Krishna for violating her statutory rights to privacy. Krishna sought coverage from West Bend in connection with that suit. West Bend agreed to defend Krishna under a reservation of rights, then filed the instant [**2]  case, seeking a declaration that it had no duty to defend or indemnify Krishna. In its partial grant of summary judgment for defendants, the circuit court found that West Bend had a duty to defend Krishna in the underlying lawsuit. Krishna has also filed a cross-appeal from the circuit court's grant of summary judgment in favor of West Bend on the issue of relief for a bad-faith denial of coverage under section 155 of the Insurance Code (215 ILCS 5/155 (West 2016)). For the following reasons, we affirm the rulings of the circuit court.

 [*P2]  I. BACKGROUND

 [*P3]  A. The Policies

 [*P4]  The policies relevant to this appeal were issued by West Bend to Krishna, effective December 1, 2014, to December 1, 2015, and December 1, 2015, to December 1, 2016 (policies). Although there are two separate policies, the relevant provisions are identical except where noted. Under the "Businessowners Liability Coverage Form," the policies provided that West Bend would pay "those sums that [Krishna] becomes legally obligated to pay as damages because of *** 'personal injury' *** to which this insurance applies" and that West Bend would have a duty to defend Krishna against "any 'suit' seeking those damages." The policies further provided that the [**3]  coverage would apply to " 'personal injury' caused by an offense arising out of your business, excluding advertising, publishing, broadcasting or telecasting done by or for you."

 [*P5]  The policies defined "[p]ersonal injury" as:

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2020 IL App (1st) 191834 *; 2020 Ill. App. LEXIS 179 **

WEST BEND MUTUAL INSURANCE COMPANY, Plaintiff-Appellant/Cross-Appellee, v. KRISHNA SCHAUMBURG TAN, INC., and KLAUDIA SEKURA, Defendants-Appellees, (Krishna Schaumburg Tan, Inc., Cross-Appellant).

Prior History:  [**1] Appeal from the Circuit Court of Cook County. No. 16-CH7994. Honorable Franklin Ulyses Valderrama, Judge Presiding.

Disposition: Affirmed.

CORE TERMS

coverage, endorsement, policies, insured, personal injury, allegations, duty to defend, circuit court, summary judgment, fax, accidental, violates, biometric, parties, argues, Dictionary, provisions, damages, right to privacy, personal data, third party, advertisements, sending, method of communication, underlying lawsuit, cross-appeal, fingerprint, recipients, lawsuit, e-mail

Civil Procedure, Appeals, Standards of Review, De Novo Review, Insurance Law, Claim, Contract & Practice Issues, Policy Interpretation, Question of Law, Judgments, Summary Judgment, Entitlement as Matter of Law, Summary Judgment Review, Standards of Review, Questions of Fact & Law, Liability & Performance Standards, Good Faith & Fair Dealing, Duty to Defend, Policy Interpretation, Ambiguous Terms, Construction Against Insurers, Ordinary & Usual Meanings, Plain Language, Business & Corporate Compliance, Internet Business, Online Advertising, Spam Email, Communications Law, Federal Acts, Telephone Consumer Protection Act, Remedies, Costs & Attorney Fees, Failure to Settle

Civil Procedure, Appeals, Standards of Review, De Novo Review, Insurance Law, Claim, Contract & Practice Issues, Policy Interpretation, Question of Law, Judgments, Summary Judgment, Entitlement as Matter of Law, Summary Judgment Review, Standards of Review, Questions of Fact & Law, Liability & Performance Standards, Good Faith & Fair Dealing, Duty to Defend, Policy Interpretation, Ambiguous Terms, Construction Against Insurers, Ordinary & Usual Meanings, Plain Language, Business & Corporate Compliance, Internet Business, Online Advertising, Spam Email, Communications Law, Federal Acts, Telephone Consumer Protection Act, Remedies, Costs & Attorney Fees, Failure to Settle