Hartford Fire Insurance v. Architectural Management, Inc.

550 N.E.2d 1110, 194 Ill. App. 3d 110, 141 Ill. Dec. 64, 1990 Ill. App. LEXIS 61
CourtAppellate Court of Illinois
DecidedJanuary 19, 1990
Docket1-88-1034
StatusPublished
Cited by14 cases

This text of 550 N.E.2d 1110 (Hartford Fire Insurance v. Architectural Management, Inc.) 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
Hartford Fire Insurance v. Architectural Management, Inc., 550 N.E.2d 1110, 194 Ill. App. 3d 110, 141 Ill. Dec. 64, 1990 Ill. App. LEXIS 61 (Ill. Ct. App. 1990).

Opinion

PRESIDING JUSTICE LaPORTA

delivered the opinion of the court:

This action was brought by plaintiffs, Hartford Fire Insurance Company and Home Insurance Company of Illinois, as subrogees of Valley View Community School District No. 364U, to recover damages as a result of a fire at the Oak View School on January 1, 1980. On the date of the fire, defendant, Certified Security Systems, Inc., maintained a fire-alarm receiving panel which it had connected between the school and the fire department in Bolingbrook, Illinois. Plaintiffs alleged that by this defendant’s negligence or by the failure of its equipment, or both, there was a delay in the communication of the fire alarm to the Bolingbrook fire department. Plaintiffs asserted further that the delay in the arrival of the fire department greatly aggravated the damages caused by the fire. Defendant Certified Security Systems, Inc., brought a motion for summary judgment based upon a liquidated damages provision contained in its contract with plaintiffs’ subrogor. The trial court granted defendant’s motion, entered judgment in favor of plaintiffs and against this defendant in the sum of $90, and denied plaintiffs’ motion for reconsideration. Plaintiffs appeal this judgment.

Plaintiffs’ complaint alleged that defendant negligently installed and maintained the fire-alarm system connected to the Oak View School, that defendant breached the obligations imposed under its contract with plaintiffs’ subrogor, and that defendant’s connecting and monitoring equipment was not reasonably suited for its intended use. In its answer to the complaint, defendant denied the plaintiffs’ allegations of negligence, breach of contract, and product liability. In addition, defendant asserted paragraphs 16, 17, and 18 of the contract as affirmative defenses to plaintiffs’ claims.

Paragraph 16 of the contract provided that defendant was not an insurer, and in case defendant failed to perform the agreed-upon services and a loss resulted, defendant’s liability would be limited to six times the monthly connection fee as liquidated damages. Paragraphs 3 and 6 of the contract stated that plaintiffs’ subrogor was to pay defendant a monthly fee of $15 for the connection to the receiving panel as well as an installation fee of $140. Defendant argued that its liquidated damages were, therefore, limited to $90 under the language contained in paragraph 16. Paragraph 17 provided for an express indemnity clause in favor of defendant, and paragraph 18 included language whereby plaintiffs’ subrogor agreed to hold defendant harmless from any and all claims caused by any hazard covered by insurance on the plaintiffs’ premises. The contract also provided that defendant was not responsible for the maintenance of the previously installed alarm system at the school. Under the terms of the contract, defendant was obligated only to connect the school’s alarm system to the receiving panel at the Bolingbrook fire department and to maintain the receiving panel. The contract further stated that the signals transmitted through the alarm system were to be monitored by the municipal fire department and that defendant assumed no responsibility for the manner in which such signals were monitored or the response, if any, to such signals. Defendant’s answer sought dismissal of the plaintiffs’ complaint.

Thereafter, defendant filed a motion for summary judgment requesting entry of an order that its liability to plaintiffs was equal to liquidated damages of $90 as specified in the contract. In response, plaintiffs’ subrogor stated that defendant’s motion sought summary judgment on the issue of damages but not on the issue of liability and claimed that the liquidated damages provision was unenforceable due to a disparity of bargaining power between defendant and plaintiffs’ subrogor. Plaintiffs argued that their subrogor had no bargaining power, citing a Bolingbrook ordinance which required that the school’s fire-alarm system be connected to the alarm monitoring equipment at the fire department. Because the only receiving panel at the fire station was defendant’s, plaintiffs claimed that their subrogor was obligated to contract with defendant and had no bargaining power in the transaction. Defendant’s reply alleged that there was no disparity of bargaining power because plaintiffs’ subrogor could have contracted with other service providers.

After a hearing, the trial court granted defendant’s motion for summary judgment. The court’s order provided that “[defendant’s] liquidated damages [were] $90” according to defendant’s contract with plaintiffs’ subrogor. The order also included a finding under Rule 304(a) (107 Ill. 2d R. 304(a)) that there was no just reason to delay its enforcement or appeal. Plaintiffs subsequently filed a motion for reconsideration which was denied by the circuit court.

On appeal, plaintiffs contend that the trial court erred in granting defendant summary judgment on the liquidated damages provision contained in the contract with plaintiffs’ subrogor.

Defendant claims that the trial court’s order granting summary judgment was proper, but also asserts that this court lacks jurisdiction to hear this appeal. Defendant contends that because the trial court’s order decided only the issue of damages, it did not terminate the controversy between the parties and was not final and appealable.

We initially consider defendant’s contention that this court lacks jurisdiction over this matter. The appellate court generally has jurisdiction to review only orders or judgments which are final (107 Ill. 2d R. 301; Flores v. Dugan (1982), 91 Ill. 2d 108, 435 N.E.2d 480), and Supreme Court Rule 304(a) provides that, in the case of multiple parties or claims, an appeal may be taken from a final judgment as to one or more, but fewer than all, of the parties or claims if the trial court makes an express written finding that there is no just reason for delaying its enforcement or appeal (107 Ill. 2d R. 304(a)). The fact that an order contains that language does not, however, make an otherwise nonfinal order appealable. Kellerman v. Crowe (1987), 119 Ill. 2d 111, 115, 518 N.E.2d 116, 118; Vijuk Bindery Equipment, Inc. v. Transconex, Inc. (1988), 171 Ill. App. 3d 408, 410, 525 N.E.2d 593, 594.

To be final and appealable, a judgment must terminate the litigation between the parties on the merits of the cause so that, if affirmed, the trial court need only execute the judgment. (Kellerman, 119 Ill. 2d at 115, 518 N.E.2d at 118.) Even though an order need not dispose of all the issues presented by the pleadings to be appealable, it must be final in that it disposes of the rights of the parties, either upon the entire controversy or upon some definite and separate part thereof. Kellerman, 119 Ill. 2d at 115, 518 N.E.2d at 118.

In the case at bar, the defendant’s motion for summary judgment sought entry of an order holding that its liability to plaintiffs was equal to liquidated damages of $90 in accordance with paragraph 16 of the contract with plaintiffs’ subrogor.

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Bluebook (online)
550 N.E.2d 1110, 194 Ill. App. 3d 110, 141 Ill. Dec. 64, 1990 Ill. App. LEXIS 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hartford-fire-insurance-v-architectural-management-inc-illappct-1990.