An Illinois owner's own insurer paid first, and the association may set it off
An Illinois owner's own insurer paid first, and the association may set it off
2026-09-10 · Illinois · Courts
What happened. On January 27, 2025 the Illinois Appellate Court, First District, First Division, reversed and remanded summary judgment for the association in Board of Directors of 1212 Lake Shore Drive Condominium Ass'n v. List, 2025 IL App (1st) 240638-U. It is a Rule 23 order and is not precedential, and it is the most useful Illinois insurance ruling of the period.1
The facts
A 34th-floor penthouse sitting partly beneath the building's 35th-floor swimming pool. Water intrusion from about 2014, culminating in a June 15, 2015 bedroom ceiling collapse and major flooding.
Two holdings
1. Genuine issues of material fact exist as to the value of the owner's damages.
2. The collateral source rule does not apply. The owner's carrier — Liberty Mutual — is not “collateral” where the declaration and the Resident's Handbook contemplate owner-carried coverage coordinated with the association's policies, and where the declaration's waiver-of-subrogation provision “essentially tracks the language of section 12(e) of the Condominium Property Act (765 ILCS 605/12(e)).”
The court found it significant that Liberty Mutual was asserting no subrogation rights, which made double recovery the live risk rather than a theoretical one. Section 12(h) was also discussed.
The argument the court rejected
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