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

2015 IL App (1st) 133376
CourtAppellate Court of Illinois
DecidedFebruary 19, 2016
Docket1-13-3376, 1-13-3486 cons.
StatusPublished
Cited by18 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 (Ill. Ct. App. 2016).

Opinion

Illinois Official Reports Digitally signed by Reporter of Decisions Reason: I attest to the accuracy and integrity of Appellate Court this document Date: 2016.02.18 13:30:47 -06'00'

Great American Insurance Co. of New York v. Heneghan Wrecking & Excavating Co., 2015 IL App (1st) 133376

Appellate Court GREAT AMERICAN INSURANCE COMPANY OF NEW YORK, Caption as Subrogee of 600 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., Plaintiffs-Appellants, v. HENEGHAN WRECKING AND EXCAVATING 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., Counterdefendant-Appellee.

District & No. First District, Fifth Division Docket Nos. 1-13-3376, 1-13-3486 cons.

Filed December 11, 2015

Decision Under Appeal from the Circuit Court of Cook County, Nos. 06-L-012285, Review 07-L-11991, 07-L-03598; the Hon. Michael Panter, Judge, presiding.

Judgment Affirmed. Counsel on Andreou & Casson Ltd., of Chicago (Frand J. Andreou, of counsel), Appeal for appellant Estate of Lorraine P. Phillips.

Taft Stettinius & Hollister LLP, of Chicago (J. Timothy Eaton and Jonathan B. Amarilio, of counsel), for other appellants.

Traub Lieberman Straus & Shrewsberry LLP, of Chicago (Mark F. Wolfe, Natalie M. Limber, and Katherine M. Kelleher, of counsel), for appellees Heneghan Wrecking & Excavating Company, and Concord Construction & Management, Inc.

Stephen R. Patton, Corporation Counsel, of Chicago (Benna Ruth Solomon, Myriam Zreczny Kasper, and Stephen G. Collins, Assistant Corporation Counsel, of counsel), for appellee City of Chicago.

Panel 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 counterplaintiff, 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.

1 Lorraine Phillips is a disabled adult for whom a guardianship estate was opened on June 27, 2012.

-2- ¶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, 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 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

-3- 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 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.

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

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2015 IL App (1st) 133376, Counsel Stack Legal Research, https://law.counselstack.com/opinion/great-american-insurance-co-v-heneghan-wrecking-excavating-co-illappct-2016.