Philadelphia Indemnity Insurance Co. v. Bellin Memorial Hospital

In an insurance coverage dispute where the underlying matter dealt with a breach of contract between a hospital (the insured) and a software company, the insured argued that its insurance company was required to cover damages awarded to it in a trial in the underlying matter by referencing a partial settlement agreement between the insurer and the insured in which the insured argued permitted recovery for claims not covered by the insurance policy. The district court agreed with the insured and the insurer appealed. The Seventh Circuit also agreed and affirmed, finding that the negotiated terms of the settlement agreement should be given their full effect. (JACKSON-AKIWUMI and PRYOR, concurring)