Ben Jazzabi v. Allstate Insurance Company, an Illinois Corporation, Ben Jazzabi v. Allstate Insurance Company, an Illinois Corporation

Ben Jazzabi (“Jazzabi”) sued Allstate Insurance Company (“Allstate”) for breach of contract because Allstate did not honor his claim under his fire insurance policy. Allstate argued that Jazzabi set the fire that gave rise to his claim, and therefore, Allstate had no obligation to honor Jazza-bi’s claim. Jazzabi prevailed in a jury trial in which the only issue was whether Jazza-bi had burned down his own house. Allstate appeals the judgment, and Jazzabi separately appeals the district court’s award of attorney’s fees. We have jurisdiction pursuant to 28 U.S.C. § 1291 . We reverse the judgment and remand for further proceedings.

I. BACKGROUND

Jazzabi’s house burned down, and he filed a claim under his fire insurance policy with Allstate. Allstate rejected the claim on the grounds that Jazzabi had either started or consented to the fire, or had concealed material facts regarding it. Jaz-zabi sued Allstate for breach of contract. Allstate did not dispute that Jazzabi had a valid policy and that Allstate had refused to honor his claim. Rather, Allstate relied on the affirmative defense of arson. At trial, the parties stipulated to the fact that arson had caused the fire.…