STORY FROM: Superstorm Sandy Insurance Litigation

Federal Judge Refuses to Reconsider $1.14 Million Default Judgment Against Insurer in Hail Damage Case

CHICAGO — An Illinois federal judge refused to reconsider the entry of a $1.14 million default judgment against an insurer in a hail damage action, ruling that the insurer’s failure to respond to the policyholder’s summons and complaint was inexcusable.

On May 18, Judge Virginia M. Kendall of the U.S. District Court for the Northern District of Illinois further held that the insurer’s actions were “willful” because at least seven of its employees had notice of the lawsuit, yet failed to ensure that the complaint was uploaded to the insurer’s document management system.

Magic Sleep Mattress Company Inc. sued its ...

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