In re Illinois Bell Switching Station Litigation

596 N.E.2d 678, 234 Ill. App. 3d 457, 173 Ill. Dec. 54, 1992 Ill. App. LEXIS 1049
CourtAppellate Court of Illinois
DecidedJune 30, 1992
DocketNo. 1—89—0974
StatusPublished
Cited by5 cases

This text of 596 N.E.2d 678 (In re Illinois Bell Switching Station Litigation) 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
In re Illinois Bell Switching Station Litigation, 596 N.E.2d 678, 234 Ill. App. 3d 457, 173 Ill. Dec. 54, 1992 Ill. App. LEXIS 1049 (Ill. Ct. App. 1992).

Opinions

JUSTICE DiVITO

delivered the opinion of the court:

Plaintiffs filed a complaint, framed as a class action representing customers of defendant Illinois Bell Telephone Company (Bell), against Bell, alleging economic damages as a result of a fire in Bell’s Hinsdale, Illinois, switching station which disrupted service for one month. Counts I and II of plaintiffs’ complaint alleged violations of the Illinois Public Utilities Act (the Act) (Ill. Rev. Stat. 1987, ch. 111⅔, par. 1 — 101 et seq.), count III alleged common law willful and wanton misconduct, count IV alleged breach of contract, and count V sought a declaratory judgment that a provision in Bell’s tariff did not bar their claims. The circuit court dismissed counts I through IV and granted summary judgment for Bell on count V. Plaintiffs appeal the court’s order pertaining to counts I, II, and V, raising as issues (1) whether a limitation of liability clause in Bell’s tariff bars recovery for economic losses resulting from interruptions in telephone service; and (2) whether the Moorman doctrine (Moorman Manufacturing Co. v. National Tank Co. (1982), 91 Ill. 2d 69, 435 N.E.2d 443) bars tort claims for economic losses due to alleged willful and wanton misconduct in actions brought pursuant to the Act. Ill. Rev. Stat. 1987, ch. 111⅔, par. 5-201.

The subject of the present litigation is Bell’s telephone switching station in Hinsdale, Illinois. Bell has five such switching stations, which route and direct telephone calls over particular geographic areas. The Hinsdale station services the western and southwestern suburbs of Chicago and is able to process 3.5 million calls per day.

In order to protect the computer equipment and cables housed in its Hinsdale station from fire, Bell equipped it with an automatic fire sensor which would detect the presence of fire. In addition, Bell equipped the Hinsdale station with a fire alarm which would sound if a fire was detected; the alarm was connected so that, if sounded, it would register in Bell’s office in Springfield, Illinois. Bell, however, did not connect the alarm to a local fire or police department. Further, although the Hinsdale station was automated and usually devoid of people, Bell did not install automatic firefighting equipment, but merely bolted manual extinguishers on the walls of the station.

On the afternoon of May 8, 1988, a fire started in Bell’s Hinsdale switching station. No one was in the station at this time; however, the fire alarm was triggered and, at 3:50 p.m., registered for nine consecutive minutes in Bell’s Springfield office. After the alarm sounded, Bell did not respond. The fire triggered a second alarm in Bell’s Springfield office at 4:20 p.m.; however, Bell again did not respond in any manner to the fire.

At 4:50 p.m., someone passing the Hinsdale station saw smoke coming from the building and alerted the fire department. Although the fire department arrived within minutes, the Hinsdale station was already consumed by fire and the contents of the station destroyed. Consequently, telephone service to the western and southwestern suburbs of Chicago ceased.

Because of the fire damage, telephone service to the area affected was disrupted for approximately one month; as a result of the disruption in service, numerous Bell customers filed class action lawsuits against Bell. The cases were eventually consolidated and an amended joint class action complaint was filed. Bell moved to dismiss the complaint for failure to state a cause of action, and the circuit court granted Bell’s motion.

Plaintiffs then filed a second amended joint class action complaint containing five counts: counts I and II contained allegations that Bell violated several provisions of the Act and the Illinois Commerce Commission rules, count III alleged willful and wanton negligence, count IV alleged breach of contract, and count V sought a declaratory judgment that the exculpatory language in Bell’s tariff did not bar the action. Bell again moved to dismiss the complaint and the circuit court granted Bell’s motion, dismissing counts I through IV and awarding summary judgment for Bell on count V. Plaintiffs appeal the court’s dismissal of counts I and II, and the award of summary judgment on count V.

I

Plaintiffs initially contend that Bell’s tariff, filed with the Illinois Commerce Commission (ICC) in accordance with the Act, is in contravention of the Act, and thus does not protect Bell from liability for interruption in service. Moreover, although the tariff, which describes the “terms and conditions of service,” preempts any contract expectancy from customers and contains an exculpatory clause which bars recovery for consequential damages due to interruptions in service, plaintiffs maintain that it is against public policy and should thus not bar plaintiffs’ claims.

In response, Bell contends that the tariff is not against public policy and, further, that the tariff, accepted by the legislature for 50 years, legally defines the limits of its liability for interruptions in service. Consequently, Bell maintains that the tariff bars plaintiffs’ claims.

The most recent tariff, like other tariffs filed by Bell going back several decades, lists among its general “regulations” a service interruption liability exclusion. That exclusion provides as follows:

“The liability of the Company for damages arising out of mistakes, omissions, interruptions, delays, errors or defects in transmission occurring in the course of furnishing service *** shall in no event exceed an amount equivalent to the proportionate charge to the customer for the period of service during which such mistake, omission, interruption, delay, error or defect in transmission occurs. No other liability shall in any case attach to the Company.” Illinois Bell Telephone Company Tariff, Illinois Commerce Commission No. 5, pt. 1, §5, par. 3.1.

Plaintiffs predicate their claims upon Bell’s duties pursuant to the Act and the ICC rules. The Act requires a public utility to provide “adequate, efficient,” and “reliable” service. (Ill. Rev. Stat. 1987, ch. 111⅔, pars. 8—101, 8—401.) The ICC rules require Bell to “adopt and pursue a maintenance program aimed at preventing service interruptions” and to “make reasonable provisions to meet emergencies resulting from *** fire[s].” (83 Ill. Adm. Code §§730.402(a), 730.408(a) (1985).) Plaintiffs assert that Bell, in failing to provide automatic fire-fighting equipment and in failing to respond to the alarms which sounded in its Springfield office, violated both the Act and ICC rules. Consequently, plaintiffs argue that Bell should not be able to escape liability by use of exculpatory language in contravention of both the Act and the ICC rules.

Neither the Act nor the ICC rules, however, specify whether the duty to provide entirely uninterrupted phone service is included in the description of adequate, efficient and reliable service. Rather, both the Act and ICC rules are silent on this point and address only general requirements of reliable and efficient service. It cannot be said that reliable and efficient service necessarily includes continuous, uninterrupted service.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Maryland Casualty Co. v. NSTAR Electric Co.
30 N.E.3d 105 (Massachusetts Supreme Judicial Court, 2015)
In Re Illinois Bell Switching Station Litigation
641 N.E.2d 440 (Illinois Supreme Court, 1994)
In re Illinois Bell Switching Station Litigation
578 N.E.2d 183 (Appellate Court of Illinois, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
596 N.E.2d 678, 234 Ill. App. 3d 457, 173 Ill. Dec. 54, 1992 Ill. App. LEXIS 1049, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-illinois-bell-switching-station-litigation-illappct-1992.