Illinois Insurance - Right to Jury Exists When Declaratory Judgment Involves Disputed Facts
Noren v. Metro. Prop. & Cas. Ins. Co., No. 1-04-2734 (
Ill. App. Ct. 1st Dist. Dec. 6, 2006)
The First District recently held that an insured’s claim for declaratory relief may need to be submitted to a jury if coverage depends on disputed factual issues.
Some of the plaintiffs’ household belongings sustained water damage while they were stored in a warehouse operated by a moving company. Plaintiffs’ homeowner policy covered water damage only if the damage
resulted from certain named perils. The plaintiffs testified that they did not know what caused the damage, while a defense expert opined that the damage was the result of flooding, a non-covered cause. The plaintiffs
argued that the insurer was not entitled to a jury trial in a declaratory judgment action, and the trial court granted the plaintiffs’ motion to strike the insurer’s jury demand.
The appellate court reversed and held that the insurer was entitled to a jury trial. Although a declaratory judgment proceeding is often a purely legal issue involving an interpretation of policy language, here there were significant
factual issues in dispute as to the cause of the loss. Accordingly, the insurer was entitled to have a jury determine the cause of the water damage and whether coverage was provided under the policy.