Robert Chemers and David Larson obtain a summary judgment for an insurer client in federal district court

Robert Chemers and David Larson obtained a summary judgment for an insurer client in federal district court in Chicago that there was no duty to defend based on 17-month late notice to the insurer by the business sophisticated insured. The Court weighed the recognized factors and found 4 of the 5 weighed against the insured, including failing to give notice as soon as practicable, the insured’s awareness of an event that might trigger coverage, the insured’s diligence in investigating potential coverage and prejudice to the insurer. The Court determined that the business sophistication of the insured was neutral, and the other factors weighed heavily against the insured – especially prejudice to the insurer as there was a $1.3 million consent judgment entered against the insured in the underlying state court defamation action.