The United States District Court for the Northern District of Illinois, applying Illinois law, held that a contract exclusion did not bar coverage for a claim for tortious interference with contract because the insured’s liability did not arise “under the terms of” a contract. The Cincinnati Ins. Co. v. Metropolis Condo. Ass’n., 2026 WL 891864 (N.D. Ill. March 31, 2026).
The insured entity served as the homeowners’ association for a high-rise building. In that capacity, it executed a management agreement with a unionized company retained to operate the building’s parking garage. The management agreement obligated the insured to pay the management company’s operating expenses, including fringe benefits owed by the company to its unionized employees. During the term of the agreement, the insured allegedly directed the management company to eliminate all fringe benefit payments to its unionized employees. When the union refused to release the management company from the terms of its
