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Illinois Court Rules Against Insurer in Consolidated Business Interruption Litigation

On February 22, 2021, an Illinois federal court ruled in favor of policyholders seeking coverage under their insurance policies for their business losses due to the COVID-19. In a consolidated ruling, District Judge Edmond Chang in the Northern District Court of Illinois denied motions to dismiss filed by Society Insurance (“Society”) in three lawsuits related to business interruption coverage. Those lawsuits were Big Onion Tavern Group, LLC et al v. Society Insurance, Inc. (1:20-cv-02005), Rising Dough Inc et al v Society Insurance (1:20-cv-05981), and Valley Lodge Corp v. Society Insurance, a Mutual Company (1:20-cv-02813). While Judge Chang denied the motions on the issues of coverage, he ruled in favor of the plaintiffs’ mutual insurer, Society Insurance, on other significant issues.

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