Insurance Coverage

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7^th Circuit Court of Appeals

Case Name: Altom Transport, Inc. v. Westchester Fire Insurance Co.,

Case No.: 15-2279; 15-2363

Officials: WOOD, Chief Judge, and BAUER and WILLIAMS, Cir‐ cuit Judges.

Focus: Insurance Coverage

Suit stemming from truck injury falls within exclusion of insurance policy.

“Nevertheless, the language of the policy is King, and the policy here unambiguously excludes coverage for lawsuits stemming from the insured’s contracts with third parties. Stampley’s claim against Altom, no matter what the legal the‐ ory may be, rests fundamentally on the lease agreement un‐ der which he was performing his carriage services. We can think of no reason why that lease agreement is not a “con‐ tract” as the policy uses the term, and if it is, then Westchester has no duty to defend or indemnify Altom from claims arising out of it. The policy states that “[Westchester] shall not be liable for Loss on account of any Claim … arising out of … or in any way involving the actual or alleged breach of any con‐ tract[.]” That seems to cover this case”

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.