Tressler attorneys Jason W. Jochum and Grace Delott successfully defended a trade standards developer in litigation of a breach of contract dispute. After the standards developer revoked certifications of three (3) members for failing to meet the criteria to obtain the certifications, the certification holders and their employer filed suit, alleging breach of an implied contract. The Tressler team moved for summary judgment in the trial court, which was granted as to the certificate holders’ employer, the court finding that the employer did not have standing to bring suit based on payment for its employees’ certifications.

The certificate holders’ case continued to trial. After an unfavorable verdict, the Tressler attorneys prevailed in a Motion for Judgment Notwithstanding the Verdict, the trial court finding there was an absence of evidence to support the jury’s verdict that the certificate holders met the required criteria.

The Illinois Appellate Court, Second District, affirmed, holding that the standards developer was entitled to deference in interpreting its own standards, and had not acted arbitrarily in revoking the certifications. The Appellate Court also affirmed the trial court’s ruling that the certificate holders’ employer lacked standing and was not an intended third-party beneficiary to any contract.

The result underscores the importance of a strong, clearly drafted standard for voluntary accrediting organizations to avoid potential risks. This is a significant litigation win for Grace and Jason that provides clarity for voluntary standards developers in complex contract and policy issues.

Congratulations to Jason and Grace!

Jason W. Jochum is a member of Tressler’s Insurance Services Practice Group. Jason concentrates his practice in the areas of insurance coverage, first- and third-party insurance property claims, bad faith claims, and professional liability matters. Jason provides comprehensive coverage analysis in disputes concerning a wide variety of policies throughout the country in both state and federal courts. These actions involve various coverage lines, including commercial general liability, professional liability, E&O, excess liability exposure, and extracontractual liability. Jason defends professionals in negligence matters, including attorneys, architects, engineers, insurance brokers, and real estate brokers. He has obtained several positive decisions. Jason also provides advice and counsel to several small- and medium-sized businesses, and litigates contractual and other matters on their behalf.

Grace Delott is an associate in Tressler’s Insurance Practice Group in our Chicago office. Grace provides comprehensive coverage analysis and defense in disputes involving a wide range of policies, including commercial general liability coverage, professional liability coverage, and reinsurance.

About Tressler LLP

Headquartered in Chicago, with ten offices located in six states, Tressler LLP is a national law firm comprised primarily of attorneys who devote their practice to the representation of the insurance industry in coverage analysis and resolution, litigation, underwriting consultation, product development, claims management, and reinsurance.

In addition, Tressler has one of the most experienced and multi-faceted government law practices in Illinois, and has attorneys who represent clients in commercial litigation, defense litigation, corporate transactions, employment law and litigation, intellectual property, and condominium and common interest community association law.

For more information, please visit www.tresslerllp.com.