In the case of “State Auto Property & Casualty Insurance Co. v. Bell & Arthur Condominium Association”, it was held that the insurer did not have a duty under Illinois law to defend the association, directors, and officers in an action regarding alleged defamation per se and property damage, as these alleged offenses occurred outside the policy period.
Regarding the duties of condominium associations, the “Westfield Insurance Company v. National Decorating Service, Inc.” case noted that under the Illinois Condominium Property Act, a condominium association may act in a representative capacity on behalf of its unit owners. However, the Act limits such representation to matters involving the common elements or more than one unit. This limitation precludes the Association from pursuing a legal remedy for damage caused to the individual unit owners’ furniture. Thus, these allegations were insufficient to invoke the insurer’s duty to defend.
The case of “Palm v. 2800 Lake Shore Drive Condominium Ass’n” highlighted that the Condominium Property Act regulates the creation and operation of Illinois condominium associations. The Act also defines “meeting of board of managers” and provides certain requirements for an association’s bylaws.
In “Truck Ins. Exchange v. Cassady”, the Condo Association sued the Developer and the officers for alleged construction defects. The court also discussed the insurance policy period about the claims.
The “Davis v. Dyson” case confirmed that unit owners in a condominium association could bring a derivative breach of fiduciary duty action against former directors. In contrast, the “Poulet” case found that causes of action for conversion and common law constructive fraud relating to an association’s account belong exclusively to that association, leaving unit owners with limited legal recourse.
In sum, the recent developments in Illinois law highlight the importance of insurance coverage periods in determining the duty to defend, restrictions on the representative capacities of condominium associations, the right of unit owners to bring lawsuits, and compliance with regulations under the Illinois Condominium Property Act. Continue reading ›