Isaac Melton and Jim DuChateau attained a rare result in a state or federal court: dismissal of a case with prejudice based on a motion for sanctions that also secured an award of attorney’s fees and costs against the plaintiff.
The property insurance claim initially appeared routine. Plaintiff informed his insurance company that pipes in his Chicago-area home had ruptured during a cold spell, allegedly causing extensive property damage. During the claim investigation, however, the insurer discovered plaintiff owned two homes in the Chicago area. As a result, it became critical to determine which property was plaintiff’s primary residence on the date of loss.
When questioned, plaintiff informed his insurer that although he was traveling on the east coast the day the pipes burst, the insured property was his residence on that date. He and his attorney produced bank statements purportedly showing transactions consistent with that claim.
Not taking plaintiff at his word, Melton subpoenaed plaintiff’s bank statements directly from plaintiffs’ bank. Those records revealed that the bank statements previously produced had been altered and falsified and that plaintiff had never resided in the house where the pipes burst. Based on this evidence, the judge granted Melton’s motion for sanctions, awarded HeplerBroom’s client’s attorneys’ fees for both the discovery required to uncover the fraud and the preparation of the sanctions motion, and dismissed the plaintiff’s case with prejudice.
Melton, a partner in the firm’s Chicago office, focuses his practice on first- and third-party insurance defense, insurance coverage disputes, and fraud and bad faith litigation. He also regularly counsels and represents insurers in matters involving medical fraud. He is licensed to practice in Illinois and is admitted to the bar of the U.S. District Court for the Northern District of Illinois.
DuChateau, a partner in the firm’s Chicago office, concentrates his practice exclusively on insurance coverage, with an emphasis on first-party property for both commercial and personal lines. He is a member of the prestigious Federation of Defense and Corporate Counsel and has been named an Illinois Super Lawyer and an Emerging Lawyer by Illinois Leading Lawyers. He was previously honored as the Legal Assistance Foundation’s Pro Bono Volunteer of the Year and as IDC’s Volunteer of the Year.