Tyler v. AllState Insurance Co.

Appellate Court of Illinois·Decided August 20, 2026·No. 1-25-0998·Unpublished

Opinion

2026 IL App (1st) 250998-U

FOURTH DIVISION

Order filed: August 20, 2026

No. 1-25-0998

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 DISTRICT

TIMOTHY TYLER and STEPHANIE TYLER, ) Appeal from the ) Circuit Court of Cook Plaintiffs-Appellants, ) County.

)

v. ) No. 2024 L 6066 )

ALLSTATE INSURANCE COMPANY, ) Honorable ) Catherine A. Schneider, Defendant-Appellee. ) Judge, presiding.

JUSTICE QUISH delivered the judgment of the court.

Justice Lyle and Justice Ocasio concurred in the judgment.

ORDER

¶ 1 Held: The dismissal of a refiled action alleging claims of breach of contract and bad faith under section 155 of the Illinois Insurance Code (215 ILCS 5/155 (West 2022)) was improper when a conflict between allegations in the plaintiffs’ amended complaint and evidentiary admissions in the plaintiffs’ prior complaints created a genuine issue of material fact regarding when plaintiffs’ causes of action accrued and whether they were time-barred.

¶ 2 Plaintiffs Timothy Tyler and Stephanie Tyler filed an action against their homeowners’ insurer, defendant Allstate Insurance Company (“Allstate”), claiming that Allstate underpaid and acted in bad faith in its handling of a 2021 insurance claim. The circuit court dismissed the Tylers’ amended complaint on the grounds that the Tylers’ allegations demonstrated that they had not brought their suit within the time limits prescribed by their insurance policy. The Tylers now appeal that dismissal, contending that there is a genuine issue of material fact regarding the accrual date of their causes of action. For the following reasons, we reverse the circuit court’s order and remand for further proceedings.

¶3 On May 31, 2022, the Tylers filed an unverified complaint against Allstate (case no. 2022 M1 110552) asserting causes of action for breach of contract and bad faith in violation of section 155 of the Illinois Insurance Code (“Insurance Code”) (215 ILCS 5/155 (West 2022)). In their claim for breach of contract, the Tylers alleged that, on or about August 26, 2021, while insured under Allstate homeowners’ insurance policy number 911 408 032, “Plaintiff’s home in particular plaintiffs [sic] roof sustained additional damage (plaintiff had presented storm damage roof claims to Allstate before this date and all of the claim[s] were denied or substantially understated by Allstate.” The Tylers did not attach a copy of the insurance policy or provide the address of the damaged property or any other details regarding the nature of the damage, but stated that the associated claim numbers were 0639229251, 0600021596, and 0498210137. The Tylers alleged that “[i]mmediately after each of the incidents involving storm damage” they gave Allstate notice and proof of loss and that Allstate breached their policy “by not paying to Plaintiff the value of the damages to plaintiff[’s] home by denying Plaintiff’s claim without good cause or proper investigation.”

¶ 4 In their bad faith claim, the Tylers alleged that Allstate had vexatiously and unreasonably delayed or denied fair and reasonable compensation for their “claims” and “for the loss they sustained due to the storm damage to their home since 2017.” They also stated, “[d]espite knowing that the Plaintiffs [sic] roof has continued to leak since 2017 when it rains and other necessary and emergent repairs are needed, Defendant Allstate has each time denied the claims making the damages and plaintiffs [sic] living conditions in their home worse.” They alleged that Allstate failed to cover the “full and obvious cost for a long period of time and therefore has denied coverage for each claim for other two years.” The Tylers voluntarily dismissed their suit on June 22, 2023.

¶5 On June 3, 2024, within the one-year refiling window provided by section 13-217 of the Code of Civil Procedure (735 ILCS 5/13-217 (West 1994)), the Tylers refiled their action as this 2024 L case, again alleging claims for breach of contract and bad faith. The Tylers alleged that their two homes were covered by homeowners’ insurance policies with Allstate: one at 4613 Ashford Drive and one at 650 Bradley Avenue, both in Matteson, Illinois. They further alleged that, “[o]n or about August 26, 2021, Plaintiffs’ homes sustained damage, in particular damage to plaintiffs’ roof at 4613 Ashford Drive and interior damage due to the home being vandalized at 650 Bradley Avenue.” The Tylers also added, “[t]he plaintiff [sic] had presented the storm damaged roof and the vandalism interior damage claims to Allstate prior to August 26, 2021, and all the claims were denied or substantially understated by Allstate.” The associated claim numbers were 0639229251, 0600021596, and 0498210137 for the Ashford property and 0551950603 for the Bradley property. According to the Tylers, Allstate refused to pay the full sum the Tylers expended to repair both homes and thus, breached the policies.

¶ 6 Within their claim alleging bad faith under section 155 of the Insurance Code, the Tylers alleged that Allstate improperly denied their claims and “failed to cover the full and obvious costs for a long period of time and therefore has denied coverage for each claim for over two years.” They also again alleged that, “[d]espite knowing that the Plaintiffs’ roof has continued to leak since 2017 when it rains and that other necessary and emergent repairs are needed, Defendant Allstate has each time denied the claims making the damages and plaintiffs[’] living condition in their home worse.” The Tylers further alleged that Allstate’s actions “constitute vexatious and unreasonable delay in failing to tender fair and reasonable compensation to Plaintiffs for the loss they sustained due to vandalism and the storm damage to the homes since 2017 and 2019.” The Tylers sought compensatory and punitive damages, plus attorney’s fees.

¶ 7 Allstate filed a combined motion to dismiss the Tylers’ complaint under section 2-619.1 of the Code of Civil Procedure (735 ILCS 5/2-619.1 (West 2024)). In relevant part, Allstate argued that the Tylers’ insurance policy contained a “Suit Against Us” provision requiring that “[a]ny suit or action must be brought within one year after the inception of loss or damage.” Allstate further argued that the Tylers’ allegations demonstrated that their roof had been leaking since 2017 and the vandalism occurred in 2019, each more than one year prior to the filing of their 2024 complaint. In lieu of a response to Allstate’s motion, the Tylers requested leave to file an amended complaint. The court granted their motion and denied Allstate’s motion to dismiss as moot.

¶ 8 On September 11, 2024, the Tylers filed an unverified first amended complaint, alleging a breach of contract claim related to the Ashford Drive property and a section 155 claim. In their claim for breach of contract, the Tylers alleged that “[o]n or about August 26, 2021, Plaintiffs’ home at 4613 Ashford Drive sustained damage, in particular, damage to Plaintiffs’ roof and interior ceiling.” The Tylers further alleged that they “filed a homeowners insurance claim with

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