American Service Insurance v. City of Chicago

935 N.E.2d 715, 404 Ill. App. 3d 769, 343 Ill. Dec. 707, 2010 Ill. App. LEXIS 1001
CourtAppellate Court of Illinois
DecidedSeptember 17, 2010
Docket1-09-1693
StatusPublished
Cited by25 cases

This text of 935 N.E.2d 715 (American Service Insurance v. City of Chicago) 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 Service Insurance v. City of Chicago, 935 N.E.2d 715, 404 Ill. App. 3d 769, 343 Ill. Dec. 707, 2010 Ill. App. LEXIS 1001 (Ill. Ct. App. 2010).

Opinion

JUSTICE ROBERT E. GORDON

delivered the opinion of the court:

This is an interlocutory appeal. The trial court dismissed the two claims which plaintiff American Service Insurance Company (ASI) had brought against defendant City of Chicago, on the ground that these two claims were now moot. In this interlocutory appeal, plaintiff ASI appeals the dismissal of these two claims. For the reasons discussed below, we reverse the partial dismissal order and remand for proceedings consistent with this opinion.

BACKGROUND

1. Overview

This appeal involves two separate types of actions. First, the City of Chicago (City) filed administrative actions against David Carrillo, Sylvia Vargas and Josué Lamontagne, who were all involved in separate motor vehicle accidents that resulted in damage to City property. Carrillo’s and Vargas’s automobile liability insurance policies were issued by ASI, and Lamontagne’s policy was issued by Medmarc Casualty Insurance Company (Medmarc).

The second type of action was a suit filed in the circuit court of Cook County by ASI and Medmarc in which the insurance companies sought to defeat any liability by them for coverage for these administrative judgments. It is this suit which is the subject of this appeal. In this circuit court suit, the defendants were: the City, which had sought administrative judgments from the policyholders; and the policyholders themselves.

In the circuit court action, plaintiff ASI sought and obtained default orders against the ASI policyholders. As a result, defendant City moved to dismiss ASI’s claims against it on the grounds that, since plaintiff ASI had already obtained default orders against the policyholder defendants, it lacked standing to pursue the policyholders’ claims and that ASI’s claims were now moot. The trial court granted the motion, which resulted in a partial dismissal of the case.

The only claims that were dismissed by the trial court were the claims of plaintiff ASI against defendant City. The claims that were not dismissed were: (1) plaintiff Medmarc’s claims against the City; (2) plaintiff Medmarc’s claims against the sole Medmarc policyholder, Josué Lamontagne; and (3) plaintiff ASI’s claims against the two ASI policyholders, David Carrillo and Sylvia Vargas. Even though the dismissal was only partial, the trial court found no reason to delay the appeal of its order and this interlocutory appeal followed.

2. The Plaintiffs

Plaintiffs ASI and Medmarc are insurance companies that are doing business in Illinois and that provide policies of automobile liability insurance to Illinois residents.

The sole appellant is plaintiff ASI, which appeals the trial court’s order dismissing, with respect to ASI only, counts I and II, which are the counts of the complaint against the City. Plaintiff Medmarc is not a party to this appeal, because the trial court stayed counts I and II with respect to plaintiff Medmarc, and stayed counts III, IV and V with respect to both plaintiffs, pending the outcome of this appeal.

3. The Defendants

The sole appellee is defendant City of Chicago. None of the policyholder defendants filed appearances or chose to file briefs in this appeal. There appears to be some confusion concerning who the policyholder defendants are. In its notice of appeal, plaintiff ASI listed the policyholder defendants as David Carrillo, Sylvia Vargas and Josué Lamontagne. These are also the same policyholder defendants listed in the caption of both the trial court’s dismissal order and plaintiffs’ third amended complaint, which was the subject of the dismissal order. However, in the caption on its appellate briefs, plaintiff ASI listed the policyholder defendants as Jan Kisielewski, 1 David Carrillo, Sylvia Vargas and Stanislaw Brzeszcz. 2 By contrast, in the caption to its appellate brief, defendant City listed the individual defendants as provided in plaintiffs notice of appeal. In this opinion, for the purpose of determining the appropriate policyholder defendants, we have relied on the notice of appeal, as well as the dismissal order and plaintiffs’ own complaint.

As explained above, there are only three policyholder defendants: Carrillo and Vargas, who owned vehicles insured by plaintiff ASI; and Lamontagne, who owned a vehicle insured by plaintiff Medmarc. While operating their respective vehicles, Carrillo, Vargas and Lamontagne were all involved in separate motor vehicle collisions which resulted in damage to City property.

Defendant City filed administrative complaints in which it alleged that the policyholder defendants violated several sections of the Chicago Municipal Code. In these complaints, defendant City sought money for property damage repairs, statutory penalties, attorney fees and administrative costs. The administrative complaints were brought before administrative hearing officers, in the City’s Department of Administrative Hearings.

For example, the administrative complaint against defendant Carrillo contained three counts and all three counts sought money pursuant to specific provisions of the Chicago Municipal Code. The first count was brought pursuant to section 8 — 4—120 of the Chicago Municipal Code (Chicago Municipal Code §8 — 4—120 (amended July 29, 1998)), which provides that any person injuring city property shall be fined between $200 and $500; the second count was brought pursuant to section 1 — 20—020 (Chicago Municipal Code §1 — 20—020 (amended July 21, 2004)), which permitted the City to recover costs; and the third count was brought pursuant to section 1 — 20—060 (Chicago Municipal Code §1 — 20—060 (amended July 21, 2004)), which authorized the City to recover attorney fees and collection costs. Although the complaint’s prefatory paragraphs alleged that defendant’s actions had violated provisions of the Illinois Vehicle Code, the three counts sought monies only pursuant to specific Municipal Code sections.

4. The Circuit Court Complaint

The third amended complaint, filed March 5, 2009, is the subject of the trial court’s dismissal order. In counts I and II, plaintiffs sought relief against defendant City. Plaintiffs sought injunctive relief in count I and declaratory relief in count II. In these counts, plaintiffs allege that the City’s administrative tribunals lacked subject matter jurisdiction over motor vehicle collisions; that the City’s administrative complaints violated the Illinois Constitution’s guarantee of a jury trial for tort claims; and that statutory law also did not permit recovery for automobile collisions in administrative tribunals.

In counts III, IV and V, plaintiffs sought relief against the policyholder defendants. In count III, plaintiffs sought a declaration that the damages alleged by defendant City were not covered under the policies issued by plaintiffs. In count iy plaintiff ASI claimed a policy defense of late notice against policyholder defendant Carrillo; and in count V, plaintiff Medmarc also claimed late notice against defendant Lamontagne.

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Cite This Page — Counsel Stack

Bluebook (online)
935 N.E.2d 715, 404 Ill. App. 3d 769, 343 Ill. Dec. 707, 2010 Ill. App. LEXIS 1001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-service-insurance-v-city-of-chicago-illappct-2010.