Case: 1:20-cv-03453 Document #: 2 Filed: 06/12/20 Page 1

ILND 44 (Rev. 09/07/18) CIVIL COVER SHEETThe ILND 44 civil cover sheet and the information contained herein neither replace nor supplement the filing and service of pleadings or other papers as required by law, except as provided by local rules of court. This form, approved by the Judicial Conference of the United States in September 1974, is required for the use of the Clerk of Court for the purpose of initiating the civil docket sheet. (See instructions on next page of this form.)

I. (a) PLAINTIFFS DEFENDANTS

(b) County of Residence of First Listed Plaintiff County of Residence of First Listed Defendant(Except in U.S. plaintiff cases) (In U.S. plaintiff cases only)

Note: In land condemnation cases, use the location of the tract of land involved.

(c) Attorneys (firm name, address, and telephone number) Attorneys (if known)

II. BASIS OF JURISDICTION (Check one box, only.) III. CITIZENSHIP OF PRINCIPAL PARTIES (For Diversity Cases Only.)(Check one box, only for plaintiff and one box for defendant.)

1 U.S. Government 3 Federal Question PTF DEF PTF DEFPlaintiff (U.S. Government not a party) Citizen of This State 1 1 Incorporated or Principal Place 4 4

of Business in This State

2 U.S. Government 4 Diversity Citizen of Another State 2 2 Incorporated and Principal Place 5 5Defendant (Indicate citizenship of parties in Item III.) of Business in Another State

Citizen or Subject of a 3 3 Foreign Nation 6 6 Foreign Country

IV. NATURE OF SUIT (Check one box, only.)CONTRACT TORTS PRISONER PETITIONS LABOR OTHER STATUTES

110 Insurance PERSONAL INJURY PERSONAL INJURY 710 Fair Labor Standards Act 375 False Claims Act120 Marine 310 Airplane 530 General 720 Labor/Management Relations 376 Qui Tam (31 USC 3729 (a))130 Miller Act 315 Airplane Product 367 Health Care/ 740 Railway Labor Act 400 State Reapportionment 140 Negotiable Instrument Liability Pharmaceutical 751 Family and Medical 410 Antitrust150 Recovery of Overpayment 320 Assault, Libel & Slander Personal Injury Leave Act 430 Banks and Banking

& Enforcement of Judgment 330 Federal Employers’ Product Liability 790 Other Labor Litigation 450 Commerce151 Medicare Act Liability 368 Asbestos Personal Injury 791 Employee Retirement 460 Deportation152 Recovery of Defaulted Student 340 Marine Product Liability

510 Motions to Vacate Sentence530 General535 Death PenaltyHabeas Corpus: 540 Mandamus & Other550 Civil Rights555 Prison Condition560 Civil Detainee – Conditionsof

Income Security Act 470 Racketeer Influenced andLoans (Excludes Veterans) 345 Marine Product Liability Confinement Corrupt Organizations

153 Recovery of Veteran’s Benefits 350 Motor Vehicle 480 Consumer Credit160 Stockholders’ Suits 355 Motor Vehicle PERSONAL PROPERTY PROPERTY RIGHTS 485 Telephone Consumer190 Other Contract Product Liability 370 Other Fraud 820 Copyrights Protection Act (TCPA)195 Contract Product Liability 360 Other Personal Injury 371 Truth in Lending 830 Patent 490 Cable/Sat TV196 Franchise 362 Personal Injury - 380 Other Personal 835 Patent – Abbreviated 850 Securities/Commodities/

Medical Malpractice Property Damage New Drug Application Exchange385 Property Damage 840 Trademark 890 Other Statutory Actions

Product Liability 891 Agricultural Acts893 Environmental Matters

REAL PROPERTY CIVIL RIGHTS BANKRUPTCY FORFEITURE/PENALTY SOCIAL SECURITY 895 Freedom of Information Act210 Land Condemnation 440 Other Civil Rights 422 Appeal 28 USC 158 625 Drug Related Seizure 861 HIA (1395ff) 896 Arbitration220 Foreclosure 441 Voting 423 Withdrawal 28 USC 157 of Property 21 USC 881 862 Black Lung (923) 899 Administrative Procedure230 Rent Lease & Ejectment 442 Employment 690 Other 863 DIWC/DIWW (405(g)) Act/Review or Appeal of240 Torts to Land 443 Housing/ 864 SSID Title XVI Agency Decision245 Tort Product Liability Accommodations IMMIGRATION 865 RSI (405(g)) 950 Constitutionality of290 All Other Real Property 445 Amer. w/Disabilities - 462 Naturalization State Statutes

Employment Application446 Amer. w/Disabilities - 463 Habeas Corpus - Alien FEDERAL TAXES

Other Detainee (Prisoner Petition) 870 Taxes (U.S. Plaintiff448 Education 465 Other Immigration or Defendant)

Actions 871 IRS—Third Party26 USC 7609

V. ORIGIN (Check one box, only.)Transferred fromAnother District(specify)

MultidistrictLitigationDirect File

1 OriginalProceeding

2 Removed fromState Court

3 Remanded fromAppellate Court

4 Reinstated orReopened

5 6 MultidistrictLitigation

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VI. CAUSE OF ACTION (Enter U.S. Civil Statute under which you are filing andwrite a brief statement of cause.)

VII. PREVIOUS BANKRUPTCY MATTERS (For nature of suit 422 and 423, enter thecase number and judge for any associated bankruptcy matter previously adjudicated by a judge of this Court.Use a separate attachment if necessary.)

VIII. REQUESTED INCOMPLAINT:

Check if this is a class action Under rule 23, F.R.CV.P.

Demand $ Check Yes only if demanded in complaint.Jury Demand: Yes No

IX. RELATED CASE(S)IF ANY

(See instructions)

Judge Case Number

X. Is this a previously dismissed or remanded case? Yes No If yes, Case # Name of Judge Date Signature of attorney of record

CFIT Holding Corporation Twin City Fire Insurance Company

DuPage County, IL Hartford County, CT

Glenn L. Udell, Shelley Smith, Brown, Udell, Pomerantz & Delrahim, Ltd., 225W. Illinois Street, Suite 300, Chicago, IL 60654, Phone: 312-475-9900

Anthony J. Anscombe, Darlene K. Alt, Steptoe & Johnson LLP, 227 WestMonroe Street, Suite 4700, Chicago, IL 60606, Phone 312-577-1300

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28 USC 1332, 1441, and 1446, Declaratory Judgment

06/12/2020 Anthony J. Anscombe

Case: 1:20-cv-03453 Document #: 2 Filed: 06/12/20 Page 1 of 1 PageID #:187

UNITED STATES DISTRICT COURT NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION

CFIT HOLDING CORPORATION,

Plaintiff, v. TWIN CITY FIRE INSURANCE COMPANY,

Defendant.

) ) ) ) ) ) ) ) ) )

FEDERAL CASE No.: 20-cv-03453 STATE CASE No.: 2020-CH-03993

DEFENDANT’S NOTICE OF REMOVAL

Defendant Twin City Fire Insurance Company (“Defendant”), by and through its

undersigned counsel, hereby provides notice pursuant to 28 U.S.C. § 1446 of the removal of the

above-captioned case from the Circuit Court of Cook County Illinois, County Department,

Chancery Division to the United States District Court for the Northern District of Illinois. The

Court has subject matter jurisdiction, and the matter is therefore removable, pursuant to 28

U.S.C. §§ 1332, 1441 and 1446. Defendant hereby files this statement of the grounds for

removing this cause of action, together with a copy of all process, pleadings and orders served

upon Defendant in the state court case. In support of removal, Defendant states the following:

1. On April 28, 2020, the Plaintiff, CFIT Holding Corporation (“Plaintiff”), an

owner/operator of fitness facilities, sued Defendant for a declaratory judgment for claims arising

out of the policy of insurance between Defendant and Plaintiff (“Policy”). Plaintiff’s lawsuit

arises out of Defendant’s denial of Plaintiff’s claims for “losses sustained due to the COVID-19

closure order.” Compl. ¶ 7.

2. The lawsuit is pending in the Circuit Court of Cook County, Illinois under Case

No. 2020-CH-03993 (“State Action”).


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3. On May 15, 2020, Defendant was served with a Summons and copy of the

Complaint in connection with the State Action.

4. Defendant timely files this Notice of Removal within 30 days of service in

accordance with 8 U.S.C. § 1446(b).

5. The United States District Court for the Northern District of Illinois embraces the

county in which the State Action was brought. Venue is proper in this Division in accordance

with 28 U.S.C. §§ 121(1) and 1441(a).

6. Pursuant to 28 U.S.C. § 1446(a), requiring a copy of all process, pleadings, and

orders served upon Defendant to be included with a notice of removal, the Complaint and

Summons are attached as Exhibit A. No other documents have been served on Defendant.

7. Plaintiff is an Illinois corporation with its principal place of business in Illinois.

Compl. ¶ 9. Plaintiff is a citizen of Illinois.

8. Defendant is incorporated in Indiana and has its principal place of business in

Connecticut. Compl. ¶ 10. Defendant is a citizen of Indiana and Connecticut. See 28 U.S.C.

§ 1332(c)(1).

9. Therefore, the parties are citizens of different states.

10. The Complaint does not state the value of Plaintiff’s claim for coverage under the

Policy, , but Plaintiff does not seek to limit the damages sought below the jurisdictional threshold

of this Court. Plaintiff is seeking a declaratory judgment pursuant to 735 ILCS 5/2-701

regarding coverage under the Policy and attorneys’ fees. Compl. ¶¶ 91; 95.

11. The amount in controversy for Plaintiff’s request for declaratory relief is the

“value of the object of the litigation.” Hunt v. Wash. State Apple Advertising Comm’n, 432 U.S.

333, 347 (1977). The “value of the object of the litigation” here is the amount of money


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Defendant would pay to Plaintiff if Plaintiff’s claim is covered under the Policy. Republic

Franklin Ins. v. Cmty. Consol. Sch. Dist. 168, No. 03 C 3439, 2003 WL 22901258, at *3 (N.D.

Ill. Dec. 8, 2003) (citing Motorists Mut. Ins. Co. v. Simpson, 404 F.2d 511, 515 (7th Cir. 1968))

(in a declaratory judgment action regarding coverage under an insurance policy, the value of the

claim is included in the amount in controversy).

12. Plaintiff is seeking coverage under the Policy for alleged lost business income for

its 22 fitness facilities located in Illinois and Indiana that closed as a result of the COVID-19

pandemic and associated governmental orders. Compl. ¶¶ 2; 7. Plaintiff does not state specific

dates as to the beginning and end of the interruption of its business and loss of income, but

alleges that it has incurred losses as a result of executive orders issued by the governors of the

states of Illinois and Indiana in March 2020 until at least the time of the filing of the Complaint

on April 28, 2020. Compl. ¶¶ 2-6.

13. While the Complaint does not state a specific amount of damages sought,

Plaintiff’s claim arises from at 22 fitness facilities, each with alleged large numbers of customers

that would give rise to the alleged losses that Plaintiff claims are covered under the Policy.

Plaintiff alleges that “[g]roups of over 50 CFIT members and guest regularly gathered at CFIT’s

facilities to use the fitness equipment and to participate in fitness classes and individual training

sessions.” Compl. ¶ 14.

14. Plaintiff also claims that it is entitled to unspecified “Extra Expense resulting

from COVID-19.” Compl. ¶ 92.

15. When combining the value of the claims for alleged lost business income, civil

authority coverage, and extra expense, Plaintiff’s demand satisfies the $75,000 amount in

controversy required by 28 U.S.C. § 1332, such that the Court has jurisdiction over the pending


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State Action.

16. This action is appropriate for removal because the matter in controversy exceeds

the sum or value of $75,000, exclusive of interest and costs, and is between citizens of different

states, in accordance with 28 U.S.C. § 1332.

17. Concurrent with the filing of this Notice and pursuant to 28 U.S.C. § 1446(d),

Defendant is serving this Notice on Plaintiff’s counsel and filing a copy of the Notice with the

Clerk of the Circuit Court of Cook County Illinois.

WHEREFORE, Defendant, TWIN CITY FIRE INSURANCE COMPANY, respectfully

requests that this Court exercise jurisdiction over this matter.

Dated this 12th day of June.

Respectfully submitted, /s/ Anthony J. Anscombe STEPTOE & JOHNSON LLP Anthony J. Anscombe (Ill. Bar No. 6257352) Darlene Alt (Ill. Bar No. 6228745) 227 West Monroe Street, Suite 4700 Chicago, IL 60606 Phone: 312-577-1265 Email: [email protected] Sarah D. Gordon John J. Kavanagh Caitlin R. Tharp 1330 Connecticut Avenue, NW Washington, DC 20036 Phone: 202-429-8005 Email: [email protected] Pro Hac Vice Applications Forthcoming Attorneys for Defendant, Twin City Fire Insurance Company


mailto:[email protected]

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Case: 1:20-cv-03453 Document #: 2 Filed: 06/12/20 Page 1