Allied Van Lines, Inc., had secured a comprehensive general liability policy from International Insurance;. When three former employees, Gerald Oberg, Nicholas Tautz and Steven Adams, filed a class action against Allied alleging that Allied had terminated their employment because of age discrimination, Allied requested International to defend the action under its policy.
International denied liability and filed this action for declaratory judgment of its obligations under its policy. The trial court entered summary judgment in favor of International, and the insured appealed.
The complaint alleged monetary loss, humiliation and emotional stress, but not bodily injury; no negligence on the part of the insured was alleged. The former employees alleged losses arising out of Alien's intentional termination rather than any negligent act. The policy plainly stated that it covered damages for which the insured was legally liable "because of bodily injury . . . to which this insurance applies." The policy excluded damages caused by humiliation or Alien's failure to comply with any state or federal law.
The judgment entered in the trial court in favor of International Insurance was affirmed.
International Insurance Company v. Allied Van Lines, Inc., Appellant--No.
1-96-0875--Appellate Court of Illinois, First District, First
Division--November 17, 1997--688 North Eastern Reporter 2d 680.