Argus Investment, Inc v. West Bend Mutual Insurance Company

CourtAppellate Court of Illinois
DecidedJune 16, 2026
Docket1-25-1987
StatusUnpublished

This text of Argus Investment, Inc v. West Bend Mutual Insurance Company (Argus Investment, Inc v. West Bend Mutual Insurance Company) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Argus Investment, Inc v. West Bend Mutual Insurance Company, (Ill. Ct. App. 2026).

Opinion

2026 IL App (1st) 251987-U

SECOND DIVISION June 16, 2026

No. 1-25-1987

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

ARGUS INVESTMENT, INC., ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Cook County. ) v. ) No. 24L201 ) WEST BEND MUTUAL INSURANCE COMPANY, ) Honorable ) James E. Hanlon, Jr., Defendant-Appellee. ) Judge Presiding. ______________________________________________________________________________

JUSTICE McBRIDE delivered the judgment of the court. Presiding Justice Van Tine and Justice D.B. Walker concurred in the judgment.

ORDER

¶1 Held: The trial court properly granted summary judgment in favor of West Bend because (1) the insurance policy unambiguously excluded coverage for water damage occurring after the property had been vacant more than 60 consecutive days; (2) West Bend did not waive its right to enforce the vacancy exclusion; and (3) West Bend was not estopped from raising this exclusion.

¶2 This appeal arose after a flood damaged property owned by plaintiff Argus Investment,

Inc. (Argus). Argus had operated a commercial brewery at the location and the property was

insured by defendant West Bend Mutual Insurance Company (West Bend). The policy included a

standard provision providing that if the building became vacant for more than 60 consecutive 1-25-1987

days before a loss, coverage would not apply to certain causes of loss, including water damage.

Prior to the flood, the brewery had ceased operation and the property remained unused.

¶3 Argus sought coverage for the flood damage from West Bend, but West Bend denied

coverage under the vacancy exclusion. Argus filed a complaint against West Bend, alleging that

the parties had entered into a contract for insurance and West Bend breached the contract when it

refused to reimburse Argus for the damage to its property. West Bend filed a counterclaim

seeking a declaratory judgment that it did not owe any duty to reimburse Argus for the damages.

West Bend subsequently moved for summary judgment and asserted that it did not breach its

insurance contract and that the vacancy of the property had not been communicated to West

Bend. Argus responded that West Bend had waived its right to enforce the vacancy exclusion.

The trial court granted West Bend’s motion and concluded West Bend did not waive the

exclusion.

¶4 On appeal, Argus contends that West Bend waived or was estopped from relying on the

vacancy exclusion because West Bend knew, or had notice, that the property was vacant. West

Bend responds that its insurance policy unambiguously excluded coverage for water damage

occurring after the building had been vacant for more than 60 days and Argus failed to establish

that West Bend had notice of the vacancy.

¶5 At the outset, we provide a brief discussion of the case law regarding insurance policies

to assist in the understanding of the issues involved here. It is well established that the insured

bears the burden of knowing the contents of its insurance policies. Babiarz v. Stearns, 2016 IL

App (1st) 150988, ¶ 43; Connelly v. Robert J. Riordan & Co., 246 Ill. App. 3d 898, 902 (1993).

“Even if they do not read the policy, they are deemed to know the information the policy

contains.” Babiarz, 2016 IL App (1st) 150988, ¶ 43 (citing Foster v. Crum & Forster Insurance

2 1-25-1987

Cos., 36 Ill. App. 3d 595, 598 (1976)). Further, an insurer has no duty to review the adequacy of

the insured’s coverage, “and when the premiums become due, the insured has the option of

accepting, rejecting, or requesting a modification of the terms of the policy.” Connelly, 246 Ill.

App. 3d at 902. “[U]nless provided otherwise, it is the general rule that when a policy renewal is

made the terms of the original policy become part of the renewal contract of insurance.” Dungey

v. Haines & Britton, Ltd., 155 Ill. 2d 329, 334 (1993).

¶6 We begin by reviewing the policy, the vacancy exclusion at issue, and some of the

evidence presented during discovery. The four witnesses deposed in this case were: Robert

Jensen, Mary Bruski, Mitchell Gall, and Mike Healy. Argus is an Illinois corporation that owns

the property located at 11314 South Front Avenue in Chicago. According to Jensen, Argus’s

chief executive, the property was acquired in 2009 and Argus operated a brewery at that location.

¶7 Argus obtained insurance for all business-related policies through an independent

insurance broker, Esser Hayes. “[A]n insurance broker is an individual who solicits insurance

business from the public under no employment from an insurance company and purchases

insurance from the company selected by the client.” Babiarz, 2016 IL App (1st) 150988, ¶ 45. In

contrast, a “captive agent” works for “one insurance company exclusively.” Am. Family Mut.

Ins. Co. v. Krop, 2018 IL 122556, ¶ 23. Mike Healy, an insurance broker with Esser Hayes,

represented Argus as his client to obtain insurance. Healy was not a captive agent for West Bend,

but instead he worked with more than 20 insurance carriers to procure insurance. Healy was

hired by Jensen to obtain insurance for Argus. The record does not disclose when Argus first

purchased a commercial general liability (CGL) policy from West Bend. However, Jensen stated

that Argus had insured the property with West Bend for years and he believed West Bend had

been the only insurer of the property.

3 1-25-1987

¶8 Through Esser Hayes, Argus purchased a CGL insurance policy from West Bend

covering the property for the period of June 10, 2021, to June 10, 2022. The policy, number

A152026 05, was issued to “Argus Investments, Inc. DBA Argus Brewery.” The policy had

previously been effective from at least June 10, 2020, and renewed automatically in 2021.

¶9 Mitchell Gall, an underwriting manager for West Bend, stated that when the June 2021

renewal came up, the policy was automatically renewed without an underwriter involved. In an

affidavit, Gall further stated that an audit was not performed for the property coverage policy.

Gall was not involved in the issuance of the policy or the claims and only became involved in the

file in 2024.

¶ 10 The CGL policy issued to Argus included exclusions for “Loss Conditions,” which

provided, in relevant part:

“6. Vacancy

a. Description of Terms

(1) As used in this Vacancy Condition, the term building and the term

vacant have the meanings set forth in (1)(a) and (1)(b) below:

***

(b) When this policy is issued to the owner or general lessee of a

building, building means the entire building. Such building is

vacant unless at least 31% of its total square footage is:

(i) Rented to a lessee or sublessee and used by the lessee or

sublessee to conduct its customary operations; and/or

(ii) Used by the building owner to conduct customary

operations.

4 1-25-1987

b. Vacancy Provisions

If the building where loss or damage occurs has been vacant for more than 60

consecutive days before that loss or damage occurs:

(1) We will not pay for any loss or damage caused by any of the

following, even if they are Covered Causes of Loss:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Dungey v. Haines & Britton, Ltd.
614 N.E.2d 1205 (Illinois Supreme Court, 1993)
Kolivera v. Hartford Fire Insurance
290 N.E.2d 356 (Appellate Court of Illinois, 1972)
Grevas v. United States Fidelity & Guaranty Co.
604 N.E.2d 942 (Illinois Supreme Court, 1992)
Connelly v. ROBERT J. RIORDAN AND CO.
617 N.E.2d 76 (Appellate Court of Illinois, 1993)
Lumbermen's Mutual Casualty Co. v. Sykes
890 N.E.2d 1086 (Appellate Court of Illinois, 2008)
In Re Estate of Doyle
838 N.E.2d 355 (Appellate Court of Illinois, 2005)
Obert v. Saville
624 N.E.2d 928 (Appellate Court of Illinois, 1993)
U.S. Bank v. Lindsey
920 N.E.2d 515 (Appellate Court of Illinois, 2009)
Home Insurance v. Cincinnati Insurance
821 N.E.2d 269 (Illinois Supreme Court, 2004)
County of Du Page v. LAKE STREET SPA, INC.
916 N.E.2d 1240 (Appellate Court of Illinois, 2009)
Robidoux v. Oliphant
775 N.E.2d 987 (Illinois Supreme Court, 2002)
Williams v. Manchester
888 N.E.2d 1 (Illinois Supreme Court, 2008)
Western Casualty & Surety Co. v. Brochu
475 N.E.2d 872 (Illinois Supreme Court, 1985)
Young v. Allstate Insurance
812 N.E.2d 741 (Appellate Court of Illinois, 2004)
Foster v. Crum & Forster Ins. Cos.
345 N.E.2d 49 (Appellate Court of Illinois, 1976)
Zdeb v. Allstate Insurance Company
404 Ill. App. 3d 113 (Appellate Court of Illinois, 2010)
Babiarz v. Stearns
2016 IL App (1st) 150988 (Appellate Court of Illinois, 2016)
Philadelphia Indemnity Insurance Co. v. Pace Suburban Bus Service
2016 IL App (1st) 151659 (Appellate Court of Illinois, 2017)
Farmers Insurance Exchange v. Cheekati
2022 IL App (4th) 210023 (Appellate Court of Illinois, 2022)
Ruda v. Jewel Food Stores, Inc.
2024 IL App (1st) 230582-U (Appellate Court of Illinois, 2024)

Cite This Page — Counsel Stack

Bluebook (online)
Argus Investment, Inc v. West Bend Mutual Insurance Company, Counsel Stack Legal Research, https://law.counselstack.com/opinion/argus-investment-inc-v-west-bend-mutual-insurance-company-illappct-2026.