Bovan v. American Family Life Insurance

897 N.E.2d 288, 386 Ill. App. 3d 933
Appellate Court of Illinois·Decided August 15, 2008·No. 1-07-1419·Published·Cited by 31 cases

Opinion

JUSTICE JOSEPH GORDON

delivered the opinion of the court:

Stacie Bovan, administrator of the estate of Lorenzo Hamilton, brought a wrongful death suit against American Family Life Insurance Company (American Family) and American Family agent Eric Lindsay. She alleged that Lindsay, as agent for American Family, had sold a life insurance policy to a man impersonating Hamilton and that the impostor was part of a conspiracy to murder the real Hamilton so that the conspirators could collect the death benefit. She thus contended that Hamilton’s death was a direct result of Lindsay’s negligence in processing the impostor’s application and American Family’s negligence in issuing the policy.

The trial court granted summary judgment in favor of Lindsay, finding that Bovan had failed to produce any evidence that would support a finding that Lindsay owed a duty of care to Hamilton or that Lindsay’s actions were the proximate cause of Hamilton’s death. (Bovan’s claim against American Family remains pending in the circuit court.) Bovan now appeals the trial court’s finding of summary judgment with respect to Lindsay. Bovan also appeals the trial court’s decision to strike the affidavit of Bovan’s expert witness Gregory Wimmer. For the reasons that follow, we affirm.

I. BACKGROUND

Bovan, individually and as special administrator of the estate of Hamilton, filed her first amended complaint for wrongful death against American Family and Lindsay on September 12, 2003. The complaint alleges the following, in relevant part.

Patrick Davis, Anthony Boyce, and Latoya Williams plotted to obtain a life insurance policy in Hamilton’s name and then murder Hamilton so that they could collect the death benefit. To this end, on or about January 19, 2001, Davis and Boyce went to the insurance office of Lindsay, an American Family agent. Lindsay allegedly helped Davis complete an application for a fife insurance policy in Hamilton’s name with a death benefit in the amount of $500,000. (It is not alleged that Lindsay was a part of the conspiracy or knew about their plans to murder Hamilton.)

The application allegedly contains a number of inaccuracies: It misstates Hamilton’s address, phone number, and employment information, it does not contain the requested driver’s license information, and it incorrectly states that Latoya Williams is Hamilton’s fiancée. In addition, it is alleged that while Davis was 21 years old, 6 feet 1 inch and 135 pounds at the time the policy was issued, Hamilton was 31 years old, 5 feet 9 inches and 170 pounds. The complaint then avers that, as a result of these discrepancies, American Family and Lindsay should have known that Davis was not Hamilton and had no insurable interest in Hamilton’s fife. Nevertheless, American Family issued the policy.

The complaint further alleges that, on or about January 21, 2001, Davis and Boyce shot and killed Hamilton. It alleges that, but for their desire to collect the benefits of the life insurance policy on Hamilton’s life, they would not have murdered him. It contends that the negligence of American Family and Lindsay in failing to properly investigate the material facts before issuing the policy was the proximate cause of Hamilton’s death. Hence, Bovan seeks damages from American Family and Lindsay for Hamilton’s death, pursuant to the terms of the Wrongful Death Act (740 ILCS 180/0.01 et seq. (West 2006)).

Lindsay filed a motion to dismiss Bovan’s claims against him, contending that Bovan failed to allege any facts that would demonstrate that Lindsay personally owed any duty of care toward Hamilton or that Lindsay owed a duty to Hamilton as an agent of American Family. In response, Bovan argued that under Illinois agency law, if a principal owes a duty to a third party, and the agent plays an “active part” in violating that duty, then the agent can be held hable to the third party in tort. In support of this contention, Bovan cited Grover v. Commonwealth Plaza Condominium Ass’n, 76 Ill. App. 3d 500, 507, 394 N.E.2d 1273, 1279 (1979).

The court granted Lindsay’s motion to dismiss, but it gave Bovan 30 days to amend her complaint to add allegations that Lindsay played an “active part” in violating a duty that American Family owed to Hamilton. Pursuant to this order, Bovan filed her second amended complaint on February 18, 2004. For purposes of this appeal, the facts alleged in the second amended complaint are substantially the same as in the first amended complaint. However, the second amended complaint adds allegations that Lindsay “actively conducted business” as American Family’s agent; that he “actively completed the life insurance application” on American Family’s behalf; and that in “actively preparing” the policy, Lindsay had a duty to exercise care and caution. Lindsay again filed a motion to dismiss, but the court denied Lindsay’s motion.

Lindsay then filed a motion for summary judgment, in which he set forth two key arguments. First, he contended that the undisputed facts showed that he had no duty to Hamilton as a matter of law and that, even assuming arguendo that such a duty existed, there was no evidence to show that Lindsay had played an “active part” in violating any such duty. Second, Lindsay contended that Lindsay’s actions as alleged by Bovan could not be considered the proximate cause of Hamilton’s death, as Lindsay could not have foreseen Hamilton’s death as the result of his actions, and Bovan had not proffered evidence to demonstrate that Hamilton’s death would not have occurred but for Hamilton’s alleged negligence.

In response to Lindsay’s motion for summary judgment, Bovan offered, among other things, an affidavit by an expert witness named Gregory Wimmer whom she had retained to offer opinions in connection with her suit. 1 In his affidavit, Wimmer stated that he was a litigation consultant and expert witness specializing in life and health insurance. Based upon his education, training, and experience in the insurance industry, he claimed to be familiar with the standard of care for insurance producers in Illinois, as well as with Illinois requirements regarding the application and approval process for life insurance policies.

Wimmer stated that he had reviewed American Family’s underwriting file, American Family’s rules and guidelines relating to the issuance of life insurance policies, and deposition testimony and affidavits of various American Family employees, including that of Lindsay. Based upon his review of these documents, he stated that it was his understanding that in personally processing Davis’s application, Lindsay “ignored many red flags, suspicious conduct, inconsistent statements, and failed to fully explain and provide material information on the application.” He therefore opined that Lindsay breached the duty of ordinary care with regard to the life insurance policy issued on Hamilton. Specifically, he said that Hamilton had a duty to submit completed applications to American Family only after he had asked and received “viable, reasonable answers,” which he had not done in the instant case.

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Bovan v. American Family Life Insurance, 897 N.E.2d 288, 386 Ill. App. 3d 933 (Ill. Ct. App. 2008).

897 N.E.2d 288 (Bovan v. American Family Life Insurance) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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