Gridley v. State Farm Mutual Automobile Insurance

840 N.E.2d 269, 217 Ill. 2d 158, 298 Ill. Dec. 499, 2005 Ill. LEXIS 1611
CourtIllinois Supreme Court
DecidedNovember 17, 2005
Docket94144
StatusPublished
Cited by113 cases

This text of 840 N.E.2d 269 (Gridley v. State Farm Mutual Automobile Insurance) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gridley v. State Farm Mutual Automobile Insurance, 840 N.E.2d 269, 217 Ill. 2d 158, 298 Ill. Dec. 499, 2005 Ill. LEXIS 1611 (Ill. 2005).

Opinion

CHIEF JUSTICE THOMAS

delivered the opinion of the court:

Plaintiff, Christopher Gridley, filed a class action complaint in the circuit court of Madison County on behalf of himself and a proposed nationwide class against defendant, State Farm Mutual Automobile Insurance Company (State Farm). Gridley’s complaint alleged unjust enrichment and violations of the Illinois Consumer Fraud and Deceptive Business Practices Act (Consumer Fraud Act) (815 ILCS 505/1 et seq. (West 2000)) in connection with State Farm’s sale of salvage vehicles.

State Farm moved to dismiss the complaint based upon the doctrine of forum non conveniens (134 Ill. 2d R. 187), arguing that Louisiana and not Illinois was the most convenient forum. Alternatively, State Farm moved to transfer the cause from Madison County to McLean County, State Farm’s principal place of business. The circuit court denied State Farm’s motions. State Farm appealed the circuit court’s order pursuant to Illinois Supreme Court Rule 306(a) (166 Ill. 2d R. 306(a)). The appellate court remanded the cause for entry of a detailed discovery order that would produce information relevant to the issues raised in the forum non conveniens motions. 329 Ill. App. 3d 422. This court allowed State Farm’s petition for leave to appeal. 177 Ill. 2d R. 315(a). We also granted the Illinois Trial Lawyers Association leave to submit an amicus curiae brief in support of plaintiff. See 155 Ill. 2d R. 345. We granted Allegiance Healthcare Corporation, Allstate Insurance Company, Baxter Healthcare Corporation, Caterpiller, Inc., Country Mutual Insurance Company, Sears Roebuck and Company, and Walgreen Company leave to submit an amicus curiae brief in support of defendant. We also granted leave to submit amicus curiae briefs in support of defendant to the Chamber of Commerce of the United States of America, the Product Liability Advisory Council, Inc., and the American Insurance Association. We now reverse the judgments of the circuit and appellate courts and remand the cause to the circuit court for entry of an order granting State Farm’s motion to dismiss based upon forum non conveniens.

BACKGROUND

Gridley, a resident of Louisiana, filed suit as representative of a class of “all persons in the United States who purchased an automobile which was previously declared a ‘total loss’ by State Farm, and for which State Farm failed to obtain a salvage title.” Gridley alleged that State Farm had a practice of obtaining “clean” titles on vehicles that it had previously declared “total losses” and that it marketed those vehicles at automobile auctions with clean titles. Gridley alleged that State Farm’s practice violated the Consumer Fraud Act because State Farm was required by state titling laws to obtain “salvage” titles on the vehicles of Gridley and the other class members but instead obtained clean titles and marketed the vehicles at auction at higher prices. State Farm concealed from Gridley and the other class members that it had previously declared the vehicles total losses. State Farm violated state law by putting those vehicles back into the chain of commerce with clean titles rather than salvage titles. Gridley also alleged that State Farm was unjustly enriched by the excess monies it received for the sale of clean titled vehicles which should have been salvage titled vehicles.

State Farm moved to dismiss the class action complaint or, in the alternative, to transfer venue pursuant to the doctrine of forum non conveniens. State Farm argued that Illinois was not the most convenient forum because Gridley, the only named plaintiff, was a resident of Louisiana, the events giving rise to the complaint were alleged to have occurred in Louisiana, and Gridley alleged a violation of Louisiana’s title law. In addition, State Farm argued that the Illinois Consumer Fraud Act could not apply to an act that took place in another state. State Farm maintained that Louisiana was the better venue for Gridley’s complaint.

In the alternative, State Farm asked the court to transfer the cause to McLean County, where State Farm has its corporate offices. State Farm noted that the McLean County courts were considerably less congested than the Madison County courts. Further, because Gridley was not a resident of Illinois or Madison County, and because the incidents at issue took place entirely in Louisiana, Gridley’s choice of forum was not entitled to any significant deference. Assuming any Illinois county was more convenient than a Louisiana court, State Farm contended that McLean County was a more convenient forum for the action than Madison County.

The circuit court denied State Farm’s motion in its entirety. The circuit court held that Illinois had a significant interest in the litigation because State Farm was headquartered here and because Gridley sought recovery under Illinois’ substantive law. The circuit court also held that it was proper to consider the size and location of the putative class in ruling on a forum non conveniens motion. The circuit court concluded that because the putative class would likely include residents of several states, an Illinois court would be as capable as a Louisiana court of assigning subclasses for each state.

The circuit court also held that State Farm had failed to satisfy its burden of proof in support of its alternative request to transfer the cause from Madison County to McLean County. The circuit court found that its calendar was not congested, and further stated that State Farm had failed to identify a single witness or document located within McLean County that was important to the case. Consequently, the circuit court held that State Farm failed to establish that the public and private interest factors strongly favored transfer of the cause from Madison County to McLean County.

As noted, the appellate court remanded the cause to the circuit court. The appellate court held that the trial court did not have sufficient facts to make an informed decision on State Farm’s forum non conveniens motion. Citing this court’s decision in First American Bank v. Guerine, 198 Ill. 2d 511 (2002), the appellate court held that in interstate as well as intrastate forum non conveniens evaluations, the balance of factors must strongly favor transfer of a case before a plaintiff can be deprived of his chosen forum. 329 Ill. App. 3d at 428. However, because the record in the circuit court lacked competent information regarding the location of documents, witnesses or sources of proof regarding State Farm’s alleged misconduct, the appellate court remanded the cause for further discovery on the forum non conveniens issue and for reconsideration in light of the appellate court’s decision and this court’s decision in Guerine.

ANALYSIS

Before we can address whether the circuit court properly denied State Farm’s motion to dismiss based upon forum non conveniens, we must first consider whether the appellate court properly remanded this cause to the circuit court for further discovery on the forum non conveniens issue. Both State Farm and Gridley agree that the appellate court erred in remanding the cause for further discovery, although the parties disagree concerning why the appellate court’s order was erroneous. State Farm maintains that the appellate court placed undue reliance on the putative class allegations.

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Cite This Page — Counsel Stack

Bluebook (online)
840 N.E.2d 269, 217 Ill. 2d 158, 298 Ill. Dec. 499, 2005 Ill. LEXIS 1611, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gridley-v-state-farm-mutual-automobile-insurance-ill-2005.