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GEN. AGENTS INS. v. MIDWEST SPORTING GOODS

No. 1-02-3160.

812 N.E.2d 620 (2004)

349 Ill.App.3d 529

285 Ill.Dec. 800

GENERAL AGENTS INSURANCE COMPANY OF AMERICA, INC., Plaintiff-Appellee, v. MIDWEST SPORTING GOODS COMPANY, The City of Chicago and The County of Cook, Defendants-Appellants.

Appellate Court of Illinois, First District, First Division.

June 28, 2004.

Attorney(s) appearing for the Case

Gregory J. Abbott, Chicago, for Appellant.

McCullough, Campbell & Lane, Chicago (Patrick M. Graber, Bart Rinn and Veronica Nulman, of counsel), for Appellee.

Justice McNULTY delivered the opinion of the court:

In this case we must decide whether an insurer may recover amounts it paid for defense of its insured in a lawsuit against the insured for claims that do not fall within the coverage of the insurance policy. We hold that under the circumstances of this case, where the insured knew when it accepted the payments that the insurer intended to seek recovery of defense costs if the court agreed that the claims were

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