Block v. Pepper Construction Co.

710 N.E.2d 85, 304 Ill. App. 3d 809, 237 Ill. Dec. 662, 1999 Ill. App. LEXIS 206
CourtAppellate Court of Illinois
DecidedMarch 31, 1999
Docket1-98-0836
StatusPublished
Cited by18 cases

This text of 710 N.E.2d 85 (Block v. Pepper Construction Co.) 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
Block v. Pepper Construction Co., 710 N.E.2d 85, 304 Ill. App. 3d 809, 237 Ill. Dec. 662, 1999 Ill. App. LEXIS 206 (Ill. Ct. App. 1999).

Opinion

JUSTICE GREIMAN

delivered the opinion of the court:

Clifford Block sustained severe injuries while employed as a construction foreman for third-party defendant Concrete Erectors, Ltd. (Concrete). Thereafter, plaintiff Patricia Block entered into a settlement agreement with defendants Pepper Construction Company, Contemporary Precast Products, and Kamm Leasing Company (collectively referred to as the settling defendants). In the agreement, the settling defendants assigned to plaintiff their right-of-contribution causes of action against Concrete. By order dated February 9, 1998, the trial court dismissed plaintiffs contribution action, finding that the right of contribution on the part of the settling defendants cannot be assigned to plaintiff based on the Joint Tortfeasor Contribution Act (Act) (740 ILCS 100/0.01 et seq. (West 1994)).

On appeal, plaintiff asserts that an assignment of a contribution action in a settlement agreement is valid, as a matter of law, and, therefore, the trial court erred in dismissing the contribution action. On cross-appeal, the issue raised is whether the contribution action is barred by the statute of limitations. We agree with plaintiff that a contribution action generally can be assigned. However, we hold that the contribution action in the present case is time-barred and, therefore, affirm the dismissal of the contribution action.

The facts are not in dispute. The underlying action arose in November 1988 when Clifford Block suffered severe injuries in a construction accident. After plaintiff filed her initial complaint against six named defendants, the trial court granted summary judgment in favor of the defendants. On direct appeal, this court reversed the summary judgment orders as to three of the defendants, i.e., the three settling defendants in the instant appeal, and remanded the matter. See Block v. Lohan Associates, Inc., 269 Ill. App. 3d 745 (1993). On March 30, 1994, the case was reinstated in the trial court. On May 27, 1994, defendants Kamm and Contemporary filed a contribution action against Concrete. On August 16, 1994, the trial court entered an order denying Concrete’s section 2—619 motion to dismiss (735 ILCS 5/2—619 (West 1994)) the contribution action filed by Kamm and Contemporary.

In September 1994, plaintiff and the settling defendants entered into a settlement agreement, subject to court approval. On September 8, 1994, plaintiff executed a general release, stating, in pertinent part, that she released the three settling defendants from all actions in exchange for a cash payment ($4.5 million), a structured settlement ($500,000) and an assignment of their contribution action. The release specifically includes:

“an assignment of the causes of action of Pepper Construction Company, Contemporary Precast Products and Kamm Leasing Company for contribution against Concrete Erectors, Ltd., or, in the event said assignment should be held invalid, then including the authorization of plaintiffs to prosecute said causes of action for contribution, at plaintiffs’ own expense, for the benefits of defendants ***, while reserving to plaintiffs the right to dismiss said contribution action or to vacate or forgive a judgment in said contribution action at any and all times as a part of any negotiated settlement of the worker’s compensation lien, and the approval of this settlement by the Circuit Court of Cook County having been sought and obtained.”

By order dated September 7, 1994, the trial court approved the settlement. In this order, the court expressly reserved “ruling on whether the settlement is a good faith settlement as to the third-party defendant, Concrete.”

On September 20, 1994, the trial court entered an order dismissing the three settling defendants with prejudice from plaintiffs cause of action, “the matter having been fully compromised and settled” and “over the objection of Concrete Erectors.” The order further stated that the contribution action “shall continue subject to further order of the court.”

On May 14, 1996, Concrete filed a brief on its motion to dismiss. Concrete argued two points: (1) the settlement did not create a right of contribution against Concrete that could be assigned or revert to settling defendants when the assignment fails, and (2) the contribution action should be dismissed as time-barred.

On February 9, 1998, in open court, the trial judge stated:

“[T]he issue before the court is whether the right of contribution on the part of the third-party plaintiffs can be assigned to the plaintiff under the Joint Tort Feasor [sic] Contribution Act. Section 2B of that Act provides the right of contribution exists only in favor of a tort feasor who [has] paid more than his pro rata share of the common liability. In the Court’s mind that is the same as saying that the right of contribution may not be assigned to the plaintiff. And so I am going to grant the motion to dismiss the third-party complaint.”

By order dated the same day, the trial court granted Concrete’s section 2—619 motion to dismiss (735 ILCS 5/2—619 (West 1994)) the contribution complaint with prejudice. Plaintiff appeals this order.

We apply a de novo standard of review to a dismissal pursuant to section 2—619. Kozak v. Moiduddin, 294 Ill. App. 3d 365, 367 (1997).

The specific inquiry on appeal is whether a right of contribution can be assigned. On the one hand, plaintiff asserts that an assignment of the contribution action is valid, as a matter of law, and comports with the Act. Concrete, however, argues that the attempted assignment of the contribution action is invalid because it contravenes the Act.

The right to pursue a contribution action is governed by section 2(b) of the Act, which provides:

“(b) The right of contribution exists only in favor of a tortfeasor who has paid more than his pro rata share of the common liability, and his total recovery is limited to the amount paid by him in excess of his pro rata share. No tortfeasor is liable to make contribution beyond his own pro rata share of the common liability” 740 ILCS 100/2(b) (West 1994).

The Illinois Supreme Court found that the Act “is silent as to whether a right of contribution that otherwise exists can be assigned.” Claudy v. Commonwealth Edison Co., 169 Ill. 2d 39, 43 (1995).

In a four-to-three decision, the majority in Claudy decided that the purported assigned contribution action failed under the particular facts of the case because the settling defendant (the city) did not pay in excess of its effective pro rata share of the common liability as required in section 2(b) of the Act. Claudy, 169 Ill. 2d at 43. In Claudy, the amount of settlement was fixed at a sum certain, i.e., $500,000. Claudy, 169 Ill. 2d at 41. The settling defendant paid $400,000 and the workers’ compensation awarded to plaintiff was just over $100,000. Claudy, 169 Ill. 2d at 43.

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Cite This Page — Counsel Stack

Bluebook (online)
710 N.E.2d 85, 304 Ill. App. 3d 809, 237 Ill. Dec. 662, 1999 Ill. App. LEXIS 206, Counsel Stack Legal Research, https://law.counselstack.com/opinion/block-v-pepper-construction-co-illappct-1999.