Erie Insurance Exchange v. Kalman

CourtAppellate Court of Illinois
DecidedJune 23, 2026
Docket1-24-0257
StatusUnpublished

This text of Erie Insurance Exchange v. Kalman (Erie Insurance Exchange v. Kalman) 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
Erie Insurance Exchange v. Kalman, (Ill. Ct. App. 2026).

Opinion

2026 IL App (1st) 240257-U

SECOND DIVISION June 23, 2026

No. 1-24-0257

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1). ______________________________________________________________________________

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT ______________________________________________________________________________

ERIE INSURANCE EXCHANGE, ) ) Plaintiff, ) v. ) ) YITZCHOK KALMAN, CLASSIC GENERAL ) CONTRACTORS, INC., A. SCHOENEMAN & CO. ) Appeal from the INC., and M. GERALD FRIED & ASSOCIATES, LLC. ) Circuit Court of ) Cook County ) Defendants. ) No. 2016 CH 7939 ) (Yitzchok Kalman, Cross-Plaintiff-Appellant, Counter- ) Honorable Defendant-Appellee, and Intervenor-Defendant-Appellee; ) Thomas More Donnelly, Zipponah Kalman, Plaintiff-Appellant, Counter- ) Judge Presiding Defendant-Appellee, and Intervenor-Defendant-Appellee; ) Classic General Contractors, Inc., Counter-Plaintiff- ) Appellant and Cross-Defendant Appellee; A. Schoeneman ) & Co., Inc. and Allen Schoeneman, Defendants-Appellees; ) Ronald and Mitchell Schoeneman, Intervenor- ) Plaintiff-Appellants) ) _____________________________________________________________________________

JUSTICE ELLIS delivered the judgment of the court. Presiding Justice Van Tine and Justice D.B. Walker concurred in the judgment.

ORDER

¶1 Held: Affirmed in part, dismissed in part. This court has no jurisdiction over cross- appeals. Without transcript, this court cannot review appellants’ arguments relating to trial judgment. Trial court did not abuse discretion in refusing to award fees or impose sanctions. Appellant presented no basis to award prejudgment interest. No. 1-24-0257

¶2 This case involves a decade-long fight between the plaintiff homeowners and the

defendant companies they initially hired to help them rebuild after a devastating house fire. The

proceedings ultimately included a complaint, countercomplaint, and intervenors’ complaint. A

good ten years after the fire, the case was tried to the bench. The court awarded almost no relief

to any party. Of the hundreds of thousands of dollars sought by plaintiffs, the court only awarded

$11,000 to the homeowners. Defendants and intervenor-plaintiffs got nothing. As nobody was

happy with the court’s judgment, multiple notices of appeal and cross-appeals were filed.

¶3 As we explain below, we lack jurisdiction over the cross-appeals in this matter. As to

plaintiffs’ appeal, we affirm the judgment below. Our review of the judgment is significantly

impaired by the lack of a trial transcript. Nor have plaintiffs convinced us the court otherwise

erred in declining to impose fees or sanctions or award prejudgment interest.

¶4 BACKGROUND

¶5 In 2014, a fire heavily damaged the home of Yitzchok and Zipponah Kalman, plaintiffs

here. The Kalmans hired A. Schoeneman & Co., Inc., or “ASCI,” as a public adjuster to

negotiate their fire claim with Erie Insurance Exchange (Erie). A public adjuster is licensed by

the state to assist an insured in negotiating the value of a claim or loss under an insurance policy.

See 215 ILCS 5/1510 (West 2024); id. § 1515 (licensure requirement).

¶6 The Kalmans believed that ASCI was a licensed adjuster. As it turned out, while the two

Schoeneman brothers (Ron and Mitchell) were licensed, the company technically was not.

Regardless, the Kalmans and ASCI entered into a written agreement by which the Kalmans

agreed to pay “(7%) of all sums recovered by adjustment, appraisal, arbitration, litigation,

settlement or otherwise pursuant to the insurance contract.” Notably, the contract also provided

that the “Adjustment fee for building is waived if [ASCI] or its affiliate performs the repairs.”

-2- No. 1-24-0257

¶7 As the Kalmans’ public adjuster, ASCI recommended the Kalmans hire Classic General

Contractors, Inc. (Classic) to perform the repairs. According to the Kalmans, however, they were

unaware that Classic and ASCI were affiliated—the Schoeneman family owned both companies.

(Defendants dispute that the Kalmans were unaware of this fact.) In any event, in August 2014,

the Kalmans hired Classic to complete the repairs on their home.

¶8 The written contract contains well over 100 “punch list” items and provides that “[t]he

aforementioned work will be completed in a neat and workmanlike manner for the sum of money

allowed by the insurance company, said amount being full insurance proceeds.” (Emphasis

added.) The contract also contains a fee-shifting provision: in the event of any dispute between

the parties, “the prevailing party in such action shall be entitled to his/her/its costs, expenses and

fees, including but not limited to reasonable attorney’s fees.”

¶9 ASCI performed its adjusting services for the Kalmans. Erie ultimately valued the fire

damage claim to their home at $222,434.28. ASCI was able to secure a significant additional

sum for personal property damage—approximately $167,000. For about a year, Classic

performed work to repair the home, but the Kalmans were unhappy and fired both ASCI and

Classic in August 2015. They then hired M. Gerald Fried as their public adjustor. (Fried would

later become the Kalmans’ expert witness in the litigation, too.)

¶ 10 At the time Classic and ASCI were fired, Erie had distributed approximately $150,000 of

the building damage claim. Classic represented to Fried that it had substantially completed the

work. Fried tried to get the remaining funds released by Erie. But on further review, the Kalmans

and Fried believed that over 40 items on the punch list were either not done or done incorrectly.

The parties were unable to reach an agreement on whether to release the additional funds and on

how they should be spent.

-3- No. 1-24-0257

¶ 11 Shortly after terminating their contract with ASCI, the Kalmans filed a complaint against

ASCI with the Illinois Department of Insurance. In March 2016, the department’s investigation

determined that ASCI “was not properly licensed at the time the contract was executed pursuant

to [Section] 1515(c) of the Illinois Insurance Code.” The department wrote that “all contracts

entered into by anyone in violation of Section 1515 of the Code are void.” See 50 Ill. Adm. Code

3118.35 (eff. Jan. 9, 2015) (prior version). The Department requested that any adjustor fees

collected by ASCI be returned to the Kalmans. The Department sent a second letter, in

September 2015, requesting that ASCI return the fee along with “any outstanding

payments/checks that were issued by the insurance company.”

¶ 12 In June 2016, Erie filed an interpleader action to have the court resolve the dispute. See

735 ILCS 5/2-409 (West 2014) (allowing interpleader suit to permit court to settle dispute over

funds held by plaintiff). Erie named the Kalmans, ASCI, and Classic. According to that

complaint, “Erie estimates that Classic is owed an additional $40,575.37 for the repair work it

has performed.” It also “estimates that an additional $34,558.37 of work remains to be done on

the residence plus $1,350 in building permits.” Erie offered to pay Classic the amount it believed

was owed but “[t]he parties have not consented to paying Classic,” nor could they agree on how

to distribute the rest of the claim. As such, Erie deposited “the remaining loss settlement of

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Erie Insurance Exchange v. Kalman, Counsel Stack Legal Research, https://law.counselstack.com/opinion/erie-insurance-exchange-v-kalman-illappct-2026.