The Illinois Supreme Court has issued a landmark decision affecting the home building and construction industry. The ruling in favor of M/I Homes of Chicago has clarified that insurance companies owe a defense to their homebuilding and construction customers who are accused of construction defects causing property damage, even in circumstances where the allegations of construction defects are “groundless, false, or fraudulent.”
The decision in Acuity v. M/I Homes of Chicago, LLC likely will have far-reaching repercussions for the construction and insurance industries in Illinois, as it essentially overturns 20 years of previous rulings by lower courts denying that alleged inadvertent construction defects could give rise to coverage under standard commercial general liability insurance policies.
“We are very glad to see our client M/I Homes prevail in the Supreme Court,” said Eric Sparks, Chair of the Litigation Practice at Gould & Ratner, and the lead attorney on the case for M/I Homes.
For more information on how the Supreme Court’s ruling may affect you and your business, please contact a member of Gould & Ratner’s Litigation Practice.