An Illinois appellate court affirmed the dismissal of an insured's case against an insurer based on the liquor liability exclusion. The case is Phusion Projects, Inc. v. Selective Ins. Co., 46 N.E.3d 1190 (Ill. App. Ct. 2015). 

Phusion Projects, Inc. (Phusion) was the manufacturer of an alcoholic energy drink called "Four Loko." From September 2008 to November 2010, six separate lawsuits were filed against Phusion for causing or contributing to the intoxication of a person who had consumed Four Loko beverages and thereafter caused either severe injury or death to themselves or another person. Each individual suit levied multiple counts against Phusion related to Four Loko, ranging from negligence and products liability to negligent failure to warn, strict liability, and negligent advertising and marketing practices. 

Phusion had commercial liability coverage under a policy issued by Selective Insurance Company (Selective). When Phusion sought coverage for the underlying lawsuits, Selective denied them all. Phusion filed for declaratory judgment that Selective owed both indemnity and defense for the underlying suits. Selective filed a motion to dismiss, claiming it was not obligated to provide defense or indemnity for any of the underlying suits because the liquor liability exclusion expressly precluded coverage for suits that alleged Phusion had caused or contributed to the intoxication of any person who had consumed Four Loko. The trial court found in favor of Selective and dismissed Phusion's claim with prejudice.