American Family Insurance v. Village Pontiac-GMC, Inc.

585 N.E.2d 1115, 223 Ill. App. 3d 624, 166 Ill. Dec. 93
CourtAppellate Court of Illinois
DecidedJanuary 16, 1992
Docket2-91-0435
StatusPublished
Cited by61 cases

This text of 585 N.E.2d 1115 (American Family Insurance v. Village Pontiac-GMC, Inc.) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Family Insurance v. Village Pontiac-GMC, Inc., 585 N.E.2d 1115, 223 Ill. App. 3d 624, 166 Ill. Dec. 93 (Ill. Ct. App. 1992).

Opinion

PRESIDING JUSTICE REINHARD

delivered the opinion of the court:

American Family Insurance Company, Farmers Insurance Company and William and Nancy Gill, plaintiffs, appeal from the orders of the circuit court of Du Page County which granted Village Pontiac-GMC, Incorporated’s, and General Motors Corporation’s, defendants’, motions for sanctions pursuant to Supreme Court Rule 219 (134 Ill. 2d R. 219) and summary judgment.

Plaintiffs essentially raise two issues on appeal: (1) whether the trial court erred in barring evidence as a sanction pursuant to Graves v. Daley (1988), 172 Ill. App. 3d 35, 526 N.E.2d 679; and alternatively (2) even if the trial court properly barred certain evidence, whether the trial court erred in granting defendants’ motions for summary judgment.

As shown through the pleadings, the motion for summary judgment and the response thereto, the facts in this case are the following. On October 1, 1981, William and Nancy Gill purchased a 1981 Pontiac Grand Prix from Village Pontiac-GMC, Incorporated (Village Pontiac), in Naperville, Illinois. The car was a demonstrator model. On October 7, 1981, William and Nancy Gill picked up the car from Village Pontiac. On the way home, several problems with the car occurred: the voltage regulator light was flashing red; the lights went dim; the car smelled as if it were burning, which was described as “a hot smell”; and the taillights went out.

Early in the morning of November 9, 1981, a fire occurred at the Gills’ home. The fire severely damaged the home and other personal property. The next day, Nancy Gill telephoned Village Pontiac and told the service director that a fireman had told her that the car caused the fire.

On November 10 and 11, 1981, John K. Mauras investigated the fire for the Gills’ homeowner’s insurer, American Family Insurance Company. Mauras’ opinion, which was based in part on the opinions of Richard W. Kraugh, an electrical engineer hired by Mauras, was that the origin of the fire was the area along the trank light wire beneath the left end of the rear seat, and the cause of the fire was a short circuit which resulted when a copper trank light circuit wire with damaged insulation contacted a grounded wire. Maurus removed the copper wire which he believed caused the short circuit.

The Gills subsequently transferred title of the car to their automobile insurance company, Farmers Insurance Company. The car was destroyed seven months later by a salvage company after Farmers Insurance had transferred the title.

On January 22, 1991, the court granted General Motors Corporation’s (General Motors’) motion to bar evidence regarding the car because it was destroyed. The order stated that “[plaintiffs are barred from presenting any evidence, direct or circumstantial, concerning the condition of the Pontiac Grand Prix which is at issue in this case, at the trial of this cause.” On March 18, 1991, the trial court granted defendants’ motions for summary judgment based on plaintiffs’ inability to use any evidence concerning the condition of the car.

Plaintiffs contend that the trial court erred in applying the holding of Graves v. Daley (1988), 172 Ill. App. 3d 35, 526 N.E.2d 679, to this case. Essentially, plaintiffs contend that because all the evidence relating to the cause of the fire, including photographs, two wires and testimony concerning the scene, had not been destroyed, the trial court erred in barring any evidence relating to the condition of the car.

In Graves v. Daley (1988), 172 Ill. App. 3d 35, 526 N.E.2d 679, the appellate court upheld a trial court’s order barring all evidence relating to the condition of a furnace which was alleged to be the cause of a fire and which was destroyed by plaintiff prior to initiation of the litigation. (172 Ill. App. 3d at 38, 526 N.E.2d at 681; see also Fire Insurance Exchange v. Zenith Radio Corp. (1987), 103 Nev. 648, 747 P.2d 911.) We believe that Graves is sound law and should be followed under the facts in the instant case.

Although other Illinois Appellate Court decisions have upheld sanctions for destruction of evidence in violation of a court order (Ralston v. Casanova (1984), 129 Ill. App. 3d 1050, 1058, 473 N.E.2d 444) and for failing to comply with discovery orders after the evidence has been lost (Stegmiller v. H.P.E., Inc. (1980), 81 Ill. App. 3d 1144, 1147, 401 N.E.2d 1156), it is similarly sound that sanctions may also be imposed despite the absence of a court order barring destruction (R. Johnston & K. Kandaras, Discovery in Illinois 181 (1985)).

Supreme Court Rule 219(c) authorizes a trial court to bar testimony if a party unreasonably refuses to comply with discovery rules and if the sanction is just. (134 Ill. 2d R. 219(c)(iv).) Supreme Court Rule 214 allows a party to request the production of tangible things for inspection and testing. (134 Ill. 2d R. 214.) Although the Illinois Supreme Court has not defined the phrase “unreasonable refusal to comply” (Wilkens v. T. Enterprises, Inc. (1988), 177 Ill. App. 3d 514, 517, 532 N.E.2d 469), it has been defined in an appellate court decision as a deliberate and pronounced disregard for a discovery rule (Lavaja v. Carter (1987), 153 Ill. App. 3d 317, 322, 505 N.E.2d 694). In determining unreasonable noncompliance, a court may focus on the importance of the information a party is seeking to have produced. (Comment, Policing Discovery Under Illinois Supreme Court Rule 219(c): A Search for Judicial Consistency, 21 Loy. U. Chi. L.J. 973, 982 (1990).) Production requests pursuant to Supreme Court Rule 214 may be frustrated by the destruction of the item sought. (Johnston & Kandaras, Discovery in Illinois, at 180.) Pretrial access to documents, tangible objects or property is often crucial to amassing a claim or defense. (Johnston & Kandaras, Discovery in Illinois, at 163.) Imposition of sanctions under Supreme Court Rule 219 is a matter within the discretion of the trial court, and a reviewing court will not disturb a trial court’s decision absent an abuse of discretion. Wyrick v. Time Chemical, Inc. (1989), 191 Ill. App. 3d 1041, 1044, 548 N.E.2d 524.

In this case, plaintiffs intentionally allowed the most crucial piece of evidence in this case to be destroyed. Plaintiffs should have known that potential defendants to a case alleging negligence and product liability would undoubtedly want to inspect, as plaintiffs’ experts had done, and perhaps test the object alleged to have caused the damage. Further, Farmers Insurance Company had title to the car and, as an insurance company, unquestionably knew the importance of the car in allowing defendants to prepare a defense.

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Bluebook (online)
585 N.E.2d 1115, 223 Ill. App. 3d 624, 166 Ill. Dec. 93, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-family-insurance-v-village-pontiac-gmc-inc-illappct-1992.