Great American Insurance Co. v. Heneghan Wrecking & Excavating Co.

2015 IL App (1st) 133376, 46 N.E.3d 859
CourtAppellate Court of Illinois
DecidedDecember 11, 2015
Docket1-13-3376, 1-13-3486 cons.
StatusUnpublished
Cited by7 cases

This text of 2015 IL App (1st) 133376 (Great American Insurance Co. v. Heneghan Wrecking & Excavating 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
Great American Insurance Co. v. Heneghan Wrecking & Excavating Co., 2015 IL App (1st) 133376, 46 N.E.3d 859 (Ill. Ct. App. 2015).

Opinion

2015 IL App (1st) 133376

Nos. 1-13-3376, 1-13-3486 cons.

FIFTH DIVISION December 11, 2015

IN THE APPELLATE COURT OF ILLINOIS FIRST JUDICIAL DISTRICT

GREAT AMERICAN INSURANCE COMPANY ) Appeal from the OF NEW YORK, as Subrogee of 600 Wabash ) Circuit Court of Commercial, LLC; AMERICAN ECONOMY ) Cook County. INSURANCE COMPANY, as Subrogee of ) Moonstone Foods Enterprises, LLC; SOCIETY ) INSURANCE, a Mutual Company, as Subrogee ) of Charming Food Network, Inc., d/b/a Tamarind; ) and FIRST NATIONAL INSURANCE COMPANY ) OF AMERICA, as Subrogee of Wabash KPX, Inc., ) ) Plaintiffs-Appellants, ) ) v. ) Nos. 06 L 012285 ) 07 L 11991 HENEGHAN WRECKING AND EXCAVATING ) 07 L 03598 COMPANY, INC., CONCORD CONSTRUCTION AND ) MANAGEMENT, INC., and THE CITY OF CHICAGO ) ) Defendants-Appellees ) ) (Lorraine P. Phillips, ) ) Defendant). ) _______________________________________________ ) ) THE ESTATE OF LORRAINE P. PHILLIPS, ) ) Counterplaintiff-Appellant, ) ) v. ) ) HENEGHAN WRECKING AND EXCAVATING ) COMPANY, INC. ) The Honorable ) Michael Panter, Counterdefendant-Appellee. ) Judge Presiding. 1-13-3376, 1-13-3486 cons.

JUSTICE LAMPKIN delivered the judgment of the court, with opinion. Presiding Justice Reyes concurred in the judgment and opinion. Justice Gordon specially concurred, with opinion.

OPINION

&1 Plaintiffs, Great American Insurance Company of New York, as subrogee of 600 Wabash

L.P. and 600 S. Wabash Commercial, LLC, American Economy Insurance Company, as

subrogee of Moonstone Foods Enterprises, LLC, Society Insurance, a mutual company, as

subrogee of Charming Food Network, Inc. d/b/a Tamarind, and First National Insurance

Company of America, as subrogee of Wabash KPX, Inc. (collectively insurance plaintiffs), and

counter-plaintiff, the Estate of Lorraine Phillips (Estate), 1 appeal the circuit court's order granting

partial summary judgment in favor of defendants, Heneghan Wrecking and Excavating Co., Inc.

(Heneghan), Concord Construction and Management (Concord), and the City of Chicago (City),

finding defendants, and specifically Heneghan with regard to the Estate, were not strictly liable

for the damages caused by the demolition of the building located at 630 S. Wabash Avenue in

Chicago, Illinois, commonly known as the Wirt Dexter building. The Estate additionally

contends the circuit erred in denying its motion for a judgment notwithstanding the jury's verdict

or, in the alternative, its motion for a new trial where the jury's verdict in favor of Heneghan on

the Estate's negligence counterclaim was not supported by the evidence. Based on the following,

we affirm.

&2 FACTS

&3 The following factual summary was provided by the circuit court:

"The Plaintiffs filed the underlying subrogation action against the

Defendants in which they seek redress for certain purported property damages, 1 Lorraine Phillips is a disabled adult for whom a guardianship estate was opened on June 27, 2012.

2 1-13-3376, 1-13-3486 cons.

lost profits, and expenses incurred as a result of a building fire and subsequent

demolition at the building located at 630 South Wabash Avenue, Chicago, Illinois

('subject premises') [or Wirt Dexter building]. On August 24, 2006, a fire ignited

within the subject premises purportedly as a result of sparks or slag that came into

contact with combustible material while an individual, Efram Lee, allegedly hired

by the owner of the subject premises, used an oxygen acetylene torch to cut up

two boilers located in the basement of the subject premises. The Plaintiffs allege

that the fire caused a substantial portion of the roof and interior supports of the

building to become charred and collapse, thereby leaving the exterior walls to

self-support themselves.

On October 25, 2006, the City filed an emergency petition and amended

complaint in which it sought authorization from the Municipal Division of the

Circuit Court of Cook County, Illinois to immediately demolish the subject

premises. That same day, the Honorable Judge Daniel J. Lynch ordered an

emergency demolition of the subject premises after finding that it was dangerous,

unsafe, and beyond reasonable repair under the Illinois Municipal Code 65 ILCS

5/11-31-1 and the Municipal Code of Chicago 13-12-130. The Court further

found that an emergency demolition was the only way to protect the public health,

safety, and welfare of the general public. The record reflects that the City

accepted bids from various contractors and thereafter hired Heneghan and

Concord to conduct the demolition of the subject premises.

During the afternoon of October 25, 2006, Heneghan began demolition of

the subject premises by first removing the bricks and steel columns of the western

3 1-13-3376, 1-13-3486 cons.

wall of the building that abutted the Chicago Transit Authority ('CTA') elevated

rail tracks until the west wall become level to the height of the tracks. Then,

Heneghan removed portions of the south and north walls. Later, during the

evening of October 25, 2006, or during the early morning hours of October 26,

2006, the structure collapsed, specifically the north wall, allegedly causing

damage to the Plaintiff insureds' building location at 600 South Wabash Avenue,

Chicago, Illinois ('600 Wabash')."

Damages also were alleged to the building located at 632 S. Wabash Avenue, which was

owned by the Estate as well. In fact, on October 30, 2006, the City authorized Heneghan

to demolish the 632 S. Wabash building because the building had been so damaged by

fire that it constituted an actual and imminent danger to the public. The building

subsequently was demolished pursuant to the City's directive.

&4 The insurance plaintiffs filed a subrogation action against defendants alleging common

law and statutory strict liability and negligence for the damage caused to the 600 building and

brought a suit against the Estate for negligence and res ipsa loquitur. The Estate then filed an

action against Heneghan alleging strict liability and negligence for the damage caused to the 632

building. After litigating the sufficiency of the pleadings for approximately six years, the

insurance plaintiffs moved for partial summary judgment on their common law and statutory

strict liability claims against defendants. Heneghan and Concord responded and filed a cross-

motion for partial summary judgment on the same claims. The City opposed the insurance

plaintiffs' motion, but did not file its own cross-motion for partial summary judgment.

&5 In a December 28, 2012, written order, the circuit court entered partial summary

judgment in favor of Heneghan and Concord against the insurance plaintiffs and the Estate on

4 1-13-3376, 1-13-3486 cons.

the common law strict liability claims, finding the demolition of the Wirt Dexter building did not

constitute an ultrahazardous activity based on the factors set forth in Section 520 of the

Restatement (Second) of Torts (Restatement (Second) of Torts § 520 (1977)). A judgment of no

liability was entered in favor of Heneghan and Concord on the common law strict liability

claims. The circuit court, however, denied the insurance plaintiffs' motion with regard to its

statutory strict liability claim against the City pursuant to section 1-4-7 of the Illinois Municipal

Code (65 ILCS 5/1-4-7

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Great American Insurance Co. v. Heneghan Wrecking & Excavating Co.
2015 IL App (1st) 133376 (Appellate Court of Illinois, 2016)

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Bluebook (online)
2015 IL App (1st) 133376, 46 N.E.3d 859, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-american-insurance-co-v-heneghan-wrecking-excavating-co-illappct-2015.