Jim DuChateau and Joe Fay recently secured a with-prejudice dismissal of a sprawling insurance coverage and bad faith suit in the U.S. District Court for the Northern District of Illinois.
The case arose from a 2024 fire loss at a Chicago residence and ensuing property insurance claim. During the investigation of the claim, the insurer determined that its named insured died 14 years prior to the fire (in 2010). Following her death, the policyholder’s daughter continued to annually renew coverage without ever disclosing to the insurer that its policyholder had died. Following the fire, the decedent-policyholder’s daughter filed a property insurance claim, at which point she disclosed for the first time that her mother had died. As the daughter was neither a party to the insurance contract nor an intended third-party beneficiary, she lacked an insurable interest in the underlying insurance policy, and coverage was denied accordingly. The daughter then filed suit for breach of contract, bad faith, and numerous equitable counts in the Circuit Court of Cook County.
After successfully removing the case to federal court, DuChateau and Fay sought to dismiss all counts of the complaint pursuant to Fed. R. Civ. P. 12(b)(6). After extensive briefing, the federal judge agreed, dismissing the breach of contract and Section 155 counts with prejudice and the equitable counts without prejudice. However, in an exceedingly rare move, in her written opinion, the federal judge warned plaintiff and her counsel that any repleading that the court deemed frivolous would result in the imposition of sua sponte sanctions. The remainder of the case then settled for a nominal amount under confidential terms.
DuChateau, a partner in the firm’s Chicago office, concentrates his practice exclusively on insurance coverage. He is a current member of the Federation of Defense and Corporate Counsel, a prestigious, invitation-only bar association reserved for corporate general counsel and senior outside defense counsel. He is a past member of Illinois Defense Counsel’s (IDC) Board of Directors and was recently honored with IDC’s 2026 Distinguished Member Award. DuChateau was previously honored as IDC’s Volunteer of the Year and as the Legal Assistance Foundation’s Pro Bono Volunteer of the Year. He’s also been named an Illinois Super Lawyer by Thomson Reuters. DuChateau earned his J.D. from the University of Illinois Chicago School of Law. He also holds a B.S. in History and a B.S. in Political Science from the University of Wisconsin. He is licensed to practice in Illinois and is admitted to the bars of the Supreme Court of Illinois; the U.S. District Courts for the District of Colorado, Eastern District of Wisconsin, Southern and Northern Districts of Indiana, Eastern District of Missouri, and Northern, Central, and Southern Districts of Illinois; and the U.S. Bankruptcy Court for the Northern District of Illinois.
Fay, an associate in the firm’s Chicago office, focuses his practice on insurance coverage and bad faith litigation, as well as high exposure personal injury and property damage litigation. Colleagues, judges, and clients speak highly of his preparedness and his ability to maintain the delicate balance between cordiality and zealous advocacy. He has been named a Rising Star by Illinois Super Lawyers and is admitted to the bars of the U.S. District Courts for the Northern and Central Districts of Illinois and the Northern and Southern Districts of Indiana.