Kabbe Enterprises, Inc. v. The Travelers Indemnity Co.

          MEMORANDUM OPINION AND ORDER

          JOHN Z. LEE UNITED STATES DISTRICT JUDGE.

         In this diversity case, Plaintiffs have sued their insurer, The Travelers Indemnity Company (“Travelers”), a Connecticut corporation, for breach of an insurance contract under Illinois law. They have also brought a negligence claim against Roofing Consultants Limited (“RCL”), a Wisconsin company hired by Travelers to inspect Plaintiffs' roof for hail damage. Defendants have each moved for summary judgment. For the following reasons, both motions are granted [38] [43]. This case is terminated.

         Background ^[[1]]

         Plaintiff Mehmet Guzeldere owns several auto repair shops and bought an insurance policy for the properties from Travelers through his insurance agent, Yusuf Ozkaymak, of Trojan Insurance Agency. Travelers' LR 56.1(a)(3) Stmt. ¶¶ 1, 7, 10. The policy at issue, Policy No. I-680-8416P163-TIA-11, covered Payless Discount Muffler & Brakes, Inc., located at 2219 South Western Avenue in Chicago, Illinois (the “Payless Property”).^[2] It was originally issued by Travelers for a one-year term effective March 26, 2010, and was renewed on March 26, 2011, for an additional one-year term. Id. ¶ 5.

         The Policy requires the insured to “give[] prompt notice of the loss or damage.” Business Owners' Property Coverage Policy, § E.3.a(2). The Policy also contains a limitation that requires the insurer to file suit under the Policy within two years of the loss:

         4. Legal Action Against Us

         No one may bring a legal action against us under this Coverage Form unless:

a. There has been full compliance with all of the terms of this Coverage Form; and

b. The action is brought within 2 years after the date on which the direct physical loss or damage occurred.

The 2 year period for legal action against us is extended by the number of days between the date the proof of loss is filed with us and the date we deny the claim in whole or in part.

         Travelers' LR 56.1(a)(3) Stmt. ¶ 34.

         When an agent binds coverage for one of its clients, Travelers' normal practice and procedure is to print complete copies of the insurance policy and mail it to the agent. Travelers' LR 56.1(a)(3) Stmt. ¶ 16. Ozkaymak would usually receive the copies in the mail, and he would deliver one copy to the client and keep the other copy in his files at Trojan. Id. ¶ 17. Although Ozkaymak states that he delivered a copy of the Policy to Guzeldere when it was originally issued and then amendments thereto when the policy was renewed, Guzeldere does not recall ever seeing one. Pl.'s LR 56.1(b)(3)(B) Stmt. (Travelers) ¶¶ 19-20. Guzeldere had instructed Ozkaymak to “hold all the papers” related to his insurance because Guzeldere was not good at keeping track of things. Id. ¶ 12. It is undisputed that Ozkaymak could retrieve and print a copy of the Policy from the Travelers' website. Travelers' LR 56.1(a)(3) Stmt. ¶¶ 18, 24, 25.^[3]

         In May 2011, there was a fire at one of Guzeldere's other properties. Id. ¶ 21. After the fire, Guzeldere asked Ozkaymak to handle the claim with Travelers. Pl.'s LR 56.1(b)(3)(B) Stmt. (Travelers) ¶ 22; Travelers' Ex. 1, Guzeldere Dep. at 28:17-23.

         According to Plaintiffs, on June 30, 2011, the Payless Property was damaged by a hailstorm. Travelers' LR 56.1(a)(3) Stmt. ¶ 4. Guzeldere states that he became aware of the damage that day. Id. ¶ 26. Plaintiffs notified Travelers ...