American Casualty Co. of Reading, PA. v. Hotel & Restaurant Employees & Bartenders International Union Welfare Fund

*592OPINION

The issue in this case is whether respondents were entitled to indemnification under an insurance policy issued by appellant American Casualty (American) for a judgment respondents were required to pay when they breached a contract. The parties stipulated that Illinois law governs this case since both the insurer and insured are domiciled in Illinois, and since the contract was negotiated and consummated there. See M & R Inv. Co., Inc. v. Fitzsimmons, 484 F. Supp. 1041 (D. Nev. 1980), aff’d, 685 F.2d 283 (9th Cir. 1982).

FACTS

Respondent, Hotel and Restaurant Employees and Bartenders…