Illinois Founders Insurance Company v. Williams

2015 IL App (1st) 122481, 31 N.E.3d 311
CourtAppellate Court of Illinois
DecidedApril 16, 2015
Docket1-12-2481
StatusUnpublished
Cited by7 cases

This text of 2015 IL App (1st) 122481 (Illinois Founders Insurance Company v. Williams) 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
Illinois Founders Insurance Company v. Williams, 2015 IL App (1st) 122481, 31 N.E.3d 311 (Ill. Ct. App. 2015).

Opinion

2015 IL App (1st) 122481

FOURTH DIVISION April 16, 2015

No. 1-12-2481

ILLINOIS FOUNDERS INSURANCE COMPANY, ) ) Plaintiff and Counterdefendant-Appellee, ) Appeal from the ) Circuit Court of v. ) Cook County. ) DELOISE WILLIAMS, as Administrator of the Estate of ) No. 10 CH 37307 Felicia Williams, Deceased, and as Guardian and Next ) Friend of Dellvonte Gibson, a Minor, ) Honorable ) Leroy K. Martin, Jr., Defendant and Counterplaintiff-Appellant, ) Judge Presiding. ) (Julius Moore, Defendant.) )

JUSTICE ELLIS delivered the judgment of the court, with opinion. * Justices Howse and Cobbs concurred in the judgment and opinion.

OPINION

¶1 This appeal addresses whether the trial court erred in granting summary judgment in

favor of plaintiff-counterdefendant Illinois Founders Insurance Co. (Founders) on a counterclaim

for attorney fees and costs pursuant to section 155 of the Illinois Insurance Code (215 ILCS

5/155 (West 2010)). Defendant-counterplaintiff Deloise Williams (defendant), on behalf of the

estate of a decedent in a car accident (Felicia Williams) and the decedent's minor son (Dellvonte

Gibson), contends that summary judgment was improper because genuine issues of material fact

existed as to whether Founders acted vexatiously and unreasonably in settling her claims, which

would justify fees and costs under section 155. Defendant also contends that the trial court

abused its discretion in denying her leave to file a second amended counterclaim. We conclude

that the trial court did not err in granting summary judgment because Founders had a bona fide

* This case was recently reassigned to Justice Ellis. No. 1-12-2481

dispute regarding its coverage of defendant's hit-and-run claim and that defendant has provided

an insufficient record to support her other contentions. We affirm the judgment of the trial court.

¶2 I. BACKGROUND

¶3 Given the issues presented by this appeal, a thorough development of the facts and

procedural history of this case is necessary. On July 18, 1997, Felicia Williams and her son,

Dellvonte Gibson, were involved in a car accident. Williams died. Gibson, who was 19 months

old at the time of the accident, survived with injuries. Defendant, Gibson's grandmother, was

appointed as administrator of Williams's estate and as Gibson's guardian. The car that Williams

was driving belonged to Julius Moore, who participated in the proceedings below but is not a

party to this appeal. Williams used the car with Moore's permission. Williams was uninsured.

¶4 The parties offered two possible scenarios that led to this accident and Williams's death.

One is that of a single-car accident, in which the car she was driving spiraled out of control,

possibly due to a blown-out tire and/or faulty brakes. The second is a hit-and-run scenario, in

which a second vehicle collided with Williams's car, leading to the fatal crash.

¶5 Moore was the named insured under a liability insurance policy issued by Founders (the

Policy). The Policy covered injuries caused by uninsured motorists (such as Williams) as well as

injuries caused by hit-and-run drivers. Defendant's initial claim to Founders was based on the

latter—she claimed that the accident resulted from a hit-and-run involving a second, unidentified

vehicle.

¶6 On August 19, 1999, Founders filed a complaint seeking a declaratory judgment that it

had "no duties with respect to the accident of July 18, 1997." Founders acknowledged that

defendant and Moore had made claims under the hit-and-run provision of the Policy but alleged

-2- No. 1-12-2481

that neither defendant nor Moore had "produced *** competent evidence that there was physical

contact between their vehicle and that of a hit-and-run vehicle" as defined by the Policy.

¶7 On September 11, 1999, defendant filed a demand for arbitration and, under the heading

"Type of Claim," checked the box labeled "Hit and Run." On October 5, 1999, Founders moved

to stay arbitration of the hit-and-run claim because it was contesting coverage under that

provision. The trial court agreed and stayed the arbitration.

¶8 On November 1, 1999, defendant moved to dismiss Founders' declaratory judgment

complaint, arguing that she was entitled to coverage even if there was no second vehicle

involved. Even if no hit-and-run accident occurred, she argued, she could bring an "uninsured

motorist" claim, alleging that Williams was a negligent, uninsured driver. In response, Founders

emphasized that its declaratory judgment complaint was directed at defendant's "hit-and-run

claims, not uninsured motorist claims," and that to date, defendant had "not presented an

uninsured motorist claim" alleging that Williams was a negligent driver in a single-car accident.

(Emphases in original.)

¶9 After continuing the case numerous times, the trial court denied defendant's motion to

dismiss on January 30, 2001. The record contains no transcripts of the proceedings related to

defendant's motion to dismiss. The two-page written order reflecting the trial court's judgment

simply states that defendant's motion "is hereby DENIED."

¶ 10 Founders' declaratory judgment action first went to trial on June 4, 2004. During the trial,

the trial court awarded judgment to Founders on a technical default—defendant had never

answered Founders' complaint for declaratory judgment. Defendant appealed that order, and this

court reversed and remanded. We held that the trial court erred in concluding that it was

compelled to enter judgment in Founders' favor on the technical default and remanded for the

-3- No. 1-12-2481

trial court to exercise its discretion on the matter. The mandate from our decision issued to the

circuit court on October 19, 2006.

¶ 11 From October 19, 2006 until April 29, 2009, no party took action regarding Founders'

declaratory judgment suit. On April 29, 2009, defendant moved to dismiss the suit for want of

prosecution and moved for leave to file a counterclaim.

¶ 12 The circuit court denied defendant's motion to dismiss Founders' claim for want of

prosecution. The record does not contain a transcript of the hearing on defendant's motion to

dismiss for want of prosecution or the trial court's ruling on that motion. Rather than filing an

answer, defendant again moved to dismiss Founders' complaint, alleging that the complaint was

time-barred. The circuit court denied this motion to dismiss, finding that defendant, not

Founders, was obligated to reinstate the case after she had prevailed on appeal.

¶ 13 The court did, however, grant defendant leave to file a counterclaim seeking attorney fees

and costs under section 155 for handling defendant's insurance claim in a vexatious and

unreasonable manner. Founders moved for summary judgment on defendant's section 155

counterclaim on November 22, 2010. During the pendency of that motion, that counterclaim was

amended, and Founders renewed its motion for summary judgment as to the amended complaint.

¶ 14 In count I of her amended counterclaim—the only count at issue on appeal and thus the

only one we will discuss—defendant alleged that Founders acted vexatiously and unreasonably

in settling her insurance claim, first, by initiating litigation on the coverage question and

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Illinois Founders Insurance Company v. Williams
2015 IL App (1st) 122481 (Appellate Court of Illinois, 2015)

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Bluebook (online)
2015 IL App (1st) 122481, 31 N.E.3d 311, Counsel Stack Legal Research, https://law.counselstack.com/opinion/illinois-founders-insurance-company-v-williams-illappct-2015.