In a compelling legal battle, a group of Illinois-based companies has taken on two major insurance entities over claims of breach of contract and other violations. On April 3, 2025, Chicago Ornamental Iron, Inc., along with 4340 W. 47th St. LLC and 4340 Holdings LLC, filed a lawsuit in the Circuit Court of Cook County against Selective Insurance Company of America and AssuredPartners of Illinois, LLC. The plaintiffs allege that the defendants failed to fulfill their contractual obligations following a catastrophic roof collapse caused by a severe rainstorm.
The plaintiffs, represented by Schoenberg Finkel Beederman Bell Glazer LLC, argue that they maintained an insurance policy with Selective Insurance Company that should have covered the damages incurred during the July 2, 2023 storm. The storm led to significant damage to their building and equipment, including a crucial piece of machinery known as the Peddinghaus Machine. Despite having coverage limits exceeding $9 million for the building alone, Selective allegedly delayed processing claims and failed to pay out necessary funds for repairs and replacements. "COI has been put in an untenable financial position by the delay in the initial adjustment of this claim," stated the plaintiffs in correspondence with Selective.
The lawsuit accuses Selective Insurance Company of breaching its contract by not paying for insured losses promptly and failing to communicate available coverages adequately. Furthermore, it alleges violations under the Illinois Insurance Code due to improper claims practices such as unreasonable delays and misrepresentations regarding policy provisions. The plaintiffs also claim that AssuredPartners was negligent in procuring appropriate insurance coverage limits based on their replacement cost appraisal.
In seeking justice, Chicago Ornamental Iron and its affiliates are asking for compensatory damages exceeding $50,000 from both defendants. They are also pursuing punitive damages under the Illinois Consumer Fraud Act for deceptive practices related to premium charges post-loss. Additionally, they seek statutory penalties under Section 155 of the Illinois Insurance Code due to what they describe as vexatious conduct by Selective.
The case is being overseen by Judge Mariyana T. Spyropoulos under Case ID: 2025L004635. Attorneys Richard M. Goldwasser and Andrew S. Johnson from Schoenberg Finkel Beederman Bell Glazer LLC represent the plaintiffs.