Golden Rule Insurance v. Olson

598 N.E.2d 1382, 233 Ill. App. 3d 760, 174 Ill. Dec. 445, 1992 Ill. App. LEXIS 1424
CourtAppellate Court of Illinois
DecidedAugust 31, 1992
Docket5-91-0503
StatusPublished
Cited by3 cases

This text of 598 N.E.2d 1382 (Golden Rule Insurance v. Olson) 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
Golden Rule Insurance v. Olson, 598 N.E.2d 1382, 233 Ill. App. 3d 760, 174 Ill. Dec. 445, 1992 Ill. App. LEXIS 1424 (Ill. Ct. App. 1992).

Opinion

JUSTICE WELCH

delivered the opinion of the court:

Plaintiff, Golden Rule Insurance Company, brought a declaratory judgment action in the circuit court of Lawrence County, challenging the enforceability of a health insurance policy issued by plaintiff to defendant, Ronald J. Olson. Plaintiff alleged in its complaint that the policy was void ab initio because of certain misrepresentations made by defendant in his application for health insurance, concerning the extent of defendant’s use of alcohol and the indication of any alcohol abuse on defendant’s part. Based on these alleged misrepresentations, plaintiff rescinded defendant’s policy of insurance, denying coverage of defendant’s medical bills incurred for the alleged treatment of alcoholic cardiomyopathy from August 16, 1989, to October 2, 1989.

Defendant filed a verified motion to transfer venue of this action, on grounds of forum non conveniens, to the circuit court of Cook County. In his motion, defendant stated that he was a resident of Cook County and had made application to plaintiff for health insurance through the Kropp Insurance Agency, which is located in Cook County. The soliciting agent for plaintiff insurance company at the Kropp Insurance Agency was Tom Terrill, who also is a resident of Cook County. The insurance policy premiums were partially paid by defendant’s employer, Chicago Embroidery Company, located in Chicago, Cook County, Illinois, and the premiums were paid in Cook County.

Defendant’s medical treatment, the bills for which were denied coverage due to the rescission of defendant’s policy, was received at Resurrection Hospital, Loyola Medical Center and Foster G. McGaw Medical Center, and each of these facilities is located in Cook County, Illinois. Defendant further stated in his motion that most of the witnesses involved in the proof of plaintiff’s complaint and the defense thereof are more accessible or subject to compulsory process to Cook County due to their location and residence and places of business. Defendant listed these potential witnesses, all of whom reside in Cook County, Illinois:

A. Tom Terrill, Kropp Insurance Agency;
B. Dr. R Patel;
C. Medical and nursing personnel of Resurrection Hospital;
D. Medical and nursing personnel of Loyola Medical Center;
E. Medical and nursing personnel of Foster G. McGaw Medical Center.

Defendant’s medical records and other related information were alleged to be more accessible and subject to compulsory process in Cook County due to their location at the above medical centers.

Defendant alleged that the denial of benefits and the rescission draft by which plaintiff reimbursed the premiums paid under the policy were not issued by plaintiff’s Lawrence County office but by plaintiff’s home office located in Indianapolis, Indiana. Defendant alleged that the only connection Lawrence County has with this cause of action is that the policy of insurance may have been issued from the Lawrence County office. Defendant not only maintained that it would be inconvenient to defend this case in Lawrence County but raised issue with whether he could get a fair trial in this county, due to the fact that plaintiff is one of the major employers in Lawrence County. Defendant stated that Cook County has a far greater connection to the subject matter of the lawsuit than Lawrence County and when all of the above factors are considered, they strongly favor application of the doctrine of forum non conveniens for transferring this cause of action to Cook County, Illinois. Defendant supported his motion for transfer of venue with his sworn affidavit.

Plaintiff filed its response objecting to the proposed transfer of venue to Cook County on grounds of forum non conveniens. In its objection, plaintiff recited that venue was proper in Lawrence County pursuant to section 2—101 of the Illinois Code of Civil Procedure, which provides in pertinent part:

“[Ejvery action must be commenced (1) in the county of residence of any defendant who is joined in good faith and with probable cause for obtaining a judgment against him or her and not solely for the purpose of fixing venue in that county, or (2) in the county in which the transaction or some part thereof occurred out of which the cause of action arose.” (Emphasis added.) (Ill. Rev. Stat. 1989, ch. 110, par. 2—101.)

Plaintiff stated that the transaction, or some part thereof, out of which the cause of action arose in the instant case occurred in Lawrence County. Moreover, plaintiff stated that venue was proper in Lawrence County since the home office of plaintiff was in Lawrence-ville, Illinois, the application and initial premium were received in Lawrenceville, Illinois, the application was processed and telephone calls regarding the application were made in Lawrenceville, and the policy was issued from Lawrenceville, Illinois. Additionally, plaintiff maintained that the claims for benefits were received and denied in Lawrenceville and the rescission letter was mailed from Lawrence-ville, Illinois.

Plaintiff cited the 1989 Report of the Administrative Office of the Illinois Courts for the proposition that the number of civil cases filed in 1989 in Cook County was 63,872 while the number of civil cases filed in Lawrence County was 58 and maintained that this factor weighed heavily in favor of denying defendant’s motion. Moreover, plaintiff stated that defendant’s inconvenience should not be considered, attaching the affidavit of John White that C. Fouts, Vicki Cozart, John Furrow, Duane Risley, Marcia Fuller, Melody Love, Kennitta Piper, Johnnielyn Tracy, Nikki Catt, Frankie J. Woodward, Vickie A. Mackey and Neal Chaplin, present or past employees of Golden Rule Insurance Company who live in and around Lawrence-ville, Illinois, were all critical witnesses in the instant case. Plaintiff further noted that the testimony of defendant’s physicians may be presented by evidentiary deposition and so there was no need that they be present at trial. In addition, plaintiff maintained that defendant’s medical records could be certified and thereby produced without any inconvenience to defendant. Moreover, plaintiff noted that all witnesses were apparently subject to compulsory process in Illinois. Finally, plaintiff maintained that defendant could not show that he would not receive a fair trial in Lawrence County, which has a population of approximately 17,000 people, because plaintiff employs a relatively small number of people, 317, at its home office in Lawrence-ville. Therefore, plaintiff argued, the significant factors did not strongly favor defendant and his motion should be denied.

The circuit court denied defendant’s motion to transfer venue by its order of June 20, 1991. The court found that in balancing private-interest factors affecting the convenience of the litigants with the public-interest factors affecting the administration of the courts, the court could find no compelling reason to disallow the exercise of plaintiff’s choice of forum, in view of the fact that venue was proper in Lawrence County. The court noted, however, that the case Golden Rule Insurance Co. v. Manasherov (1990), 200 Ill. App.

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Cite This Page — Counsel Stack

Bluebook (online)
598 N.E.2d 1382, 233 Ill. App. 3d 760, 174 Ill. Dec. 445, 1992 Ill. App. LEXIS 1424, Counsel Stack Legal Research, https://law.counselstack.com/opinion/golden-rule-insurance-v-olson-illappct-1992.