United States District Court, N.D. Illinois, Eastern Division
THE WINDRIDGE OF NAPERVILLE CONDOMINIUM ASSOCIATION, Plaintiff,
PHILADELPHIA INDEMNITY INSURANCE CO., Defendant.
MEMORANDUM OPINION AND ORDER
Windridge of Naperville Condominium Association brought this
suit under the diversity jurisdiction, alleging that its
insurance policy with Philadelphia Indemnity Insurance
Company (“PIIC”) entitled it to an independent
appraisal to value storm damage to its condominium building
in Naperville, Illinois. Doc. 19. (There actually are several
damaged buildings, but for simplicity the court will pretend
there is just one.) Windridge moved to compel an appraisal.
Doc. 25. The court granted in part and denied in part the
motion, requiring PIIC to proceed to appraisal as to the
damage indisputably covered by the policy, but not as to the
claimed damage over which there was a genuine coverage
dispute. Docs. 47-48 (reported at 2017 WL 372308 (N.D. Ill.
Jan. 26, 2017)).
parties proceeded to litigate that coverage dispute, which
concerns the extent of PIIC's obligation to replace the
building's aluminum siding. Docs. 51, 53. The storm
physically damaged the siding on the building's south and
west elevations, but not on the north and east elevations.
PIIC says that the policy requires it pay to replace the
siding only on the south and west elevations. Windridge says
that because replacement siding that matches the undamaged
north and east elevations is no longer available, PIIC must
pay to replace the siding on all four elevations to ensure
that all four elevations match. Windridge moves for partial
summary judgment on that coverage issue. Doc. 67. The motion
is granted in part and denied in part.
following facts are stated as favorably to PIIC, the
non-movant, as permitted by the record and Local Rule 56.1.
See Woods v. City of Berwyn, 803 F.3d 865, 867 (7th
Cir. 2015). In considering Windridge's motion, the court
must assume the truth of those facts, but does not vouch for
them. See Arroyo v. Volvo Grp. N. Am., 805 F.3d 278,
281 (7th Cir. 2015).
issued an insurance policy to Windridge covering damage to
its building. Doc. 74 at ¶¶ 1, 5-6. The
policy's “[c]overage” provision states that
PIIC must “pay for direct physical ‘loss' to
Covered Property caused by or resulting from any of the
Covered Causes of Loss.” Id. at ¶ 10.
Here, in pertinent part, is the policy's loss valuation
We will determine the value of Covered Property in the event
of “loss” as follows:
a. At replacement cost (without deduction for depreciation)
as of the time of “loss” …
(1) We will not pay more for “loss” on a
replacement cost basis than the least of:
(a) The Limit of Insurance applicable to the lost or damaged
(b) The cost to replace the lost or damaged property with
(i) Of comparable material and quality; and
(ii) Used for the same purpose; ...