A federal judge sided with Travelers Indemnity Co. in a dispute over repairs to the historic Pittsfield Building in downtown Chicago, finding that the plaintiffs’ reliance on an unverified verbal estimate to recover $1.14 million invalidated their coverage and required them to pay back $300,000 to the insurer.
Acknowledging “it is somewhat unusual” to resolve issues involving a party’s “intentional misrepresentation” at the summary judgment phase, U.S. District Judge Nancy L. Maldonado of the Northern District of Illinois concluded that the Pittsfield Development plaintiffs misrepresented they were owed $1.14 million for lead paint and asbestos removal after pipes burst and caused more than $8.5 million worth of damagein December 2016. The parties disputed the plaintiffs’ reliance of a “generalized estimate” that was provided by a contractor,July 3 opinion said.
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