Burmac Metal Finishing Co. v. West Bend Mutual Insurance Co.

CourtAppellate Court of Illinois
DecidedMarch 31, 2005
Docket2-04-0544 Rel
StatusPublished

This text of Burmac Metal Finishing Co. v. West Bend Mutual Insurance Co. (Burmac Metal Finishing Co. v. West Bend Mutual Insurance 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
Burmac Metal Finishing Co. v. West Bend Mutual Insurance Co., (Ill. Ct. App. 2005).

Opinion

No. 2--04--0544

______________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

SECOND DISTRICT

______________________________________________________________________________

BURMAC METAL FINISHING COMPANY,

Plaintiff-Appellant,

v.

WEST BEND MUTUAL INSURANCE COMPANY,

Defendant-Appellee.

)

Appeal from the Circuit Court

of Winnebago County.

No. 97--L--252

Honorable

Ronald L. Pirrello,

Judge, Presiding.

______________________________________________________________________________

JUSTICE BYRNE delivered the opinion of the court:

Plaintiff, Burmac Metal Finishing Co., brought a claim against defendant , West Bend Mutual Insurance Co., its commercial insurer, to cover the loss of its commercial property after a fire damaged the property.  The jury found that plaintiff failed to substantially perform the condition of the insurance contract that required plaintiff to maintain its automatic sprinkler system and returned a general verdict in favor of defendant .  Thereafter, the trial court entered judgment for defendant and awarded it costs in the amount of $3,632.

P laintiff appeals the judgment, contending that the trial court erred in denying its motion for a judgment notwithstanding the verdict or, in the alternative, denying its motion for a new trial.   Plaintiff further contends that the trial court abused its discretion in awarding costs to defendant . We affirm.

BACKGROUND

Duane and Susan Dickson have been the owners and operators of plaintiff since 1981.  Some time around 1990, the Dicksons relocated plaintiff 's operations to a building located at 2300 11th Street in Rockford, which it insured through defendant .  Plaintiff sought coverage from defendant after a natural gas explosion and ensuing fire caused damage to the building on March 29, 1997.  Defendant denied coverage, claiming plaintiff failed to satisfy a condition precedent under the insurance policy when plaintiff failed to properly maintain its automatic sprinkler system, which was required by the protective safeguards endorsement (PSE) to the policy.  Plaintiff filed a complaint for declaratory judgment against defendant .

Deposition testimony revealed that plaintiff 's employees were directed to plug at least three sprinkler heads that had been placed over an oven in plaintiff 's building.  Plaintiff was seeking to prevent the building's automatic sprinkler system from activating over the area containing the oven because of the high heat generated by the oven.  Plaintiff did not inform defendant of the sprinkler removals.  An independent insurance adjuster hired by defendant testified that he found 13 capped sprinklers, including one sprinkler that had been over the oven.  His investigation revealed that the fire had originated in the area of the oven.

The trial court granted defendant 's motion for summary judgment, finding that plaintiff did not comply with the conditions of the policy and therefore was not entitled to coverage.  Thereafter, plaintiff appealed.   Burmac Metal Finishing Co. v. West Bend Mutual Insurance Co. , No. 2--00--1390 (2002) (unpublished order under Supreme Court Rule 23).

On appeal, w e found that the policy clearly required plaintiff to maintain a sprinkler system in its 11th Street building as a condition precedent to insurance coverage .  However, we held that the question of whether plaintiff substantially complied with the condition precedent of maintaining the sprinkler system was a question of fact that should have precluded the granting of summary judgment .  The record revealed that plaintiff removed and plugged only 3 to 13 sprinklers out of over 600 and that, although the fire may have originated in the area of the plugged sprinklers, the disabled sprinklers may not have caused or contributed to the fire.  This presented a question of fact as to plaintiff 's compliance, and accordingly, we held that summary judgment was improper.  Thus, the cause continued on remand to a jury trial on the sole question of whether plaintiff substantially complied with the condition precedent of maintaining the sprinkler system in question.

THE JURY TRIAL ON REMAND

At the jury trial on remand, Duane testified that the building was equipped with an automatic sprinkler system consisting of approximately 600 sprinkler heads.  The system consisted of four major sections and the water flow to each section was controlled by a separate "post-indicator valve" or PIV.  If a PIV is in the closed position, there is no water flow to the portion of the sprinkler system controlled by the closed PIV.  However, a closed PIV can be overridden if necessary to fight a fire.  The configuration of plaintiff 's automatic sprinkler system remained unchanged from 1990 through the time of the

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Burmac Metal Finishing Co. v. West Bend Mutual Insurance Co., Counsel Stack Legal Research, https://law.counselstack.com/opinion/burmac-metal-finishing-co-v-west-bend-mutual-insur-illappct-2005.