Foran Glennon shareholders John Eggum and Matthew Ponzi successfully obtained summary judgment for their insurer client, precluding recovery on a $12.2 million water damage insurance claim filed by the owner of a 40-story high rise located in Downtown Chicago. The United States District Court for the Northern District of Illinois ruled that the policyholder had intentionally misrepresented material facts, resulting in the enforcement of the policy’s Concealment, Misrepresentation and Fraud Clause and awarding the insurer more than $441,000, representing a full refund of all amounts paid.
Case Background
The case arose from a December 2016 pipe leak that allegedly caused damage to multiple floors of the high rise. The policyholder, the high rise owner, sought more than $12.2 million in coverage, including $1,140,000 for asbestos remediation, which included a $950,000 “Bid Item” from an asbestos contractor. However, in connection with that claim, the Court found that the owner “did in fact make an intentional and material misrepresentation as a matter of law” as no such “Bid Item” existed.
During litigation, the policyholder affirmed this claim at a corporate representative deposition.
When asked to provide proof of the $950,000 figure, the policyholder claimed they had a proposal from a contractor. However, depositions from the asbestos contractor confirmed a Bid was never issued, nor was any documentation issued by the contractor to the policyholder or their representatives.
The Court found that the policyholder’s repeated presentation of this hypothetical quote as proof of their damages demonstrated an intent to deceive or mislead the insurer into paying an amount that was never owed. This violated the insurance policy, which states “This policy is void if the Insured or any other person or entity insured under this policy, at any time subsequent to the issuance of this insurance, commits fraud or intentionally conceals or misrepresents a material fact relating to: a. This policy; b. The Covered Property; c. The Insured’s interest in the Covered Property; or d. A claim under this policy.”
The Court ruled that the policyholder’s fraudulent misrepresentations rendered the policy void and ultimately granted summary judgment in favor of Foran Glennon’s insurer client.
John litigates property, energy, and builder’s risk insurance claims around the country, including in lawsuits where bad faith and claim handling disputes are at issue. In jury trials, bench decisions and other aspects of property litigation, he has established a strong track record of success for insurers facing significant contractual and extracontractual exposure. Additionally, he is a frequent speaker at insurance industry events, including on topics of, property loss causation, delay-in-startup measurement in the builder’s risk context, LEG-3, appraisal and claim handling practices. He’s been recognized by various organizations for his work and leadership in the legal and insurance industries, including by The American Lawyer, which named him a Midwest Trailblazer, the Illinois Association of Defense Trial Lawyers, the Chicago Daily Law Bulletin and Chicago Lawyer, Super Lawyers and Leading Lawyers.
Matt concentrates his practice in insurance coverage and commercial litigation, specifically in the analysis and litigation of commercial property, liability and reinsurance claims. Clients trust his extensive trial experience at both the federal and state level when faced with challenging litigation matters.