Kulchawik v. Durabla Manufacturing Co.

Procedural entryThis page is a short order in Kulchawik v. Durabla Manufacturing Co.. Read the opinion of the Court — 371 Ill. App. 3d 964
Appellate Court of Illinois·Decided February 27, 2007·No. 1-05-1932, 1-05-1933, 1-05-1934, 1-05-1935, 1-05-1936, 1-05-1937, 1-05-1938, 1-05-1939, 1-05-1940, 1-05-1941, 1-05-1942, 1-05-1943, 1-05-1944, 1-05-1945, 1-05-1946, 1-05-1947, 1-05-1948, 1-05-1955, 1-05-1956, 1-05-1957, 1-05-1958, 1-05-1959, 1-05-1960, 1-05-1961, 1-05-1962, 1-05-1963, 1-05-1964, 1-05-2012 Cons. Rel·Published

Opinion

SECOND DIVISION February 27, 2007

Nos. 1-05-1932, 1-05-1933, 1-05-1934, 1-05-1935, 1-05-1936, 1-05- 1937, 1-05-1938, 1-05-1939, 1-05-1940, 1-05-1941, 1-05-1942, 1- 05-1943, 1-05-1944, 1-05-1945, 1-05-1946, 1-05-1947, 1-05-1948, 1-05-1955, 1-05-1956, 1-05-1957, 1-05-1958, 1-05-1959, 1-05-1960, 1-05-1961, 1-05-1962, 1-05-1963, 1-05-1964, and 1-05-2012, Consolidated.

SHERYL KULCHAWIK; MARY DAVIS, Special ) Appeal from the Administrator of the Estate of Harold ) Circuit Court of Davis, Deceased; ROBERT BUHS; PAUL ) Cook County. MAHAFFEY; WILLIAM K. KESSLER, Special ) Administrator of the Estate of WILLIAM ) M. KESSLER, Deceased; MARION GERDES, ) Special Administrator of the Estate ) of WAYNE GERDES, Deceased; ELAINE ) MCLAUGHLIN, Special Administrator ) of the Estate of ROBERT MCLAUGHLIN, ) Deceased; ROBERT FRANKENBACH, Special ) Administrator of the Estate of JOHN ) FRANKENBACH, Deceased; ANTHONY LEAZZO; ) BERNICE E. RODGERS, Special ) Administrator of the Estate of ELWYN ) RODGERS, Deceased; SARAH MAXIE, Special ) Administrator of the Estate of KENNETH ) MAXIE, Deceased; LILA MORRIS, Special ) Administrator of the Estate of ) THOMAS MORRIS, Deceased; MICHAEL ) BOATMAN, Executor for the Estate of ) RAYMOND KNARIAN, Deceased; KENNETH ) SARICH, Special Administrator of ) the Estate of MARLENE SARICH, Deceased; ) CAROL CONNOLLY, Special Administrator ) of the Estate of PATRICK CONNOLLY, ) Deceased; ROBERT FRANKENBACH, Special ) Administrator of the Estate of SHIRLEY ) FRANKENBACH, Deceased; DONNA BARGAS, ) Special Administrator of the Estate of ) RAYMOND BARGAS, Deceased; MARY BAKER ) and DEVON FAULKNER, Co-Personal ) Representatives of the Estate of ) ALMETA FAULKNER, Deceased; AGNES ) ROBINSON, Special Administrator of ) the Estate of JACK ROBINSON, ) Deceased; RITA WERNER, Special ) Administrator of the Estate of ) LARRY WERNER, Deceased; STANLEY ) MARCINKOWSKI, III, Special ) Administrator of the Estate of ) STANLEY MARCINKOWSKI, Deceased; ) GERARDINA MANZI, Special ) Administrator of the Estate of ) ANTONIO MANZI, Deceased; GERALD ) LORENTZE, Special Administrator ) of the Estate of NANCY LORENTZEN, ) Deceased; MARY A. LANGNER, ) Special Administrator of the ) Estate of RUSSELL LANGNER, ) Deceased; IRENE PABIAN-KOLBUS, ) Special Administrator of the ) Estate of RICHARD KOLBUS, ) Deceased; LINDA BARISAS, ) Executor of the Estate of ROBERT ) BARISAS, Deceased; DON SCOTT; ) SUZANNE MCDONOUGH, Special ) Administrator of the Estate of ) THOMAS MCDONOUGH, Deceased, ) ) Plaintiffs-Appellees, ) ) v. ) ) DURABLA MANUFACTURING COMPANY, ) Honorable ) William D. Maddux, Defendant-Appellant. ) Judge Presiding.

PRESIDING JUSTICE WOLFSON delivered the opinion of the

court:

At issue is a purported settlement agreement between a group

of plaintiffs involved in asbestos litigation and the defendant,

Durabla Manufacturing Company (Durabla). Durabla says the

agreement is invalid because its counsel lacked the authority to

enter into the settlement absent Durabla’s express permission.

We affirm the trial court’s orders finding an enforceable

2 1-05-1932, 1-05-1933, 1-05-1934, 1-05-1935, 1-05-1936, 1-05-1937, 1-05-1938, 1-05-1939, 1-05-1940, 1-05-1941, 1-05-1942, 1-05-1943, 1-05-1944, 1-05-1945, 1-05-1946, 1-05-1947, 1-05-1948, 1-05-1955, 1-05-1956, 1-05-1957, 1-05-1958, 1-05-1959, 1-05-1960, 1-05-1961, 1-05-1962, 1-05-1963, 1-05-1964, and 1-05-2012, Cons.

agreement existed between the parties.

FACTS

Durabla, an asbestos manufacturer, was named in several

hundred asbestos personal injury lawsuits in Cook County. In

most of the Cook County cases, the plaintiffs were represented by

the law firm of Cooney and Conway. On April 23, 2003, Robert

Meyer, counsel for Durabla, wrote a letter to William Fahey, a

partner at Cooney and Conway, confirming a settlement agreement

resolving claims between Durabla and “all pending and future

Cooney and Conway cases involving Durabla.” Meyer was

subsequently dismissed as Durabla’s counsel in Illinois.

The April 23, 2003, letter specified the amounts of the

settlements, which varied depending on the individual plaintiff’s

diagnosis. The letter noted Durabla would pay the appropriate

settlement amount “in all cases in which product exposure is

demonstrated by affidavit, and/or interrogatory answers.”

Durabla agreed to pay the appropriate amount “within 90 days of

receipt of the affidavit and/or interrogatory answers and a

medical report or medical record showing the appropriate

diagnosis.” Upon payment, Cooney and Conway was required to

provide a full release and a stipulation for dismissal with

3 1-05-1932, 1-05-1933, 1-05-1934, 1-05-1935, 1-05-1936, 1-05-1937, 1-05-1938, 1-05-1939, 1-05-1940, 1-05-1941, 1-05-1942, 1-05-1943, 1-05-1944, 1-05-1945, 1-05-1946, 1-05-1947, 1-05-1948, 1-05-1955, 1-05-1956, 1-05-1957, 1-05-1958, 1-05-1959, 1-05-1960, 1-05-1961, 1-05-1962, 1-05-1963, 1-05-1964, and 1-05-2012, Cons.

prejudice.

Between April 2003 and January 2005, Durabla settled and

paid 128 claims under the process outlined in the settlement

letter. Following a discussion between Cooney and Conway and

Durabla’s current attorney, the settlement agreement was

terminated on February 8, 2005. The attorneys agreed any case

filed on or before February 7, 2005, was subject to the prior

agreement. The record contains a copy of an email dated February

8, 2005, from Cooney and Conway to Durabla’s current attorney.

It states, in part:

"i want to thank dave and you for taking the

time to meet today. i want to memorialize

our discussions as i understand them. as of

feb. 8, 2005 durabla has terminated its

settlement agreement with cooney and conway

clients*** any case filed on or before feb.

7, 2005 will be subject to the prior

agreement***"

The authenticity of the email has not been challenged.

Durabla’s attorney did not challenge any of the statements made

in the email until Mach 5, 2005.

4 1-05-1932, 1-05-1933, 1-05-1934, 1-05-1935, 1-05-1936, 1-05-1937, 1-05-1938, 1-05-1939, 1-05-1940, 1-05-1941, 1-05-1942, 1-05-1943, 1-05-1944, 1-05-1945, 1-05-1946, 1-05-1947, 1-05-1948, 1-05-1955, 1-05-1956, 1-05-1957, 1-05-1958, 1-05-1959, 1-05-1960, 1-05-1961, 1-05-1962, 1-05-1963, 1-05-1964, and 1-05-2012, Cons.

On January 25, 2005, 39 plaintiffs brought motions to compel

payment of settlement funds. The record shows ten of the

plaintiffs’ claims were moot because they were settled and

stipulations for dismissal entered. The stipulations were signed

by Durabla’s current counsel.

In their motion to compel, the plaintiffs contended that,

pursuant to the settlement agreement, they had returned to

Durabla properly executed releases three to five months earlier.

Durabla had not released the settlement funds. The 28 claims at

issue were filed prior to the February 7, 2005, cut-off.

On February 23, 2005, Durabla filed a response to

plaintiff’s motion to compel settlement. In its response,

Durabla said:

“A settlement agreement was entered into

between Plaintiffs’ counsel and then counsel

for Durabla Manufacturing Company on April

23, 2003. Pursuant to this agreement,

Durabla Manufacturing Company agreed to pay

certain sums upon receipt of proof of

exposure to Durabla products through an

affidavit or interrogatory answers and a

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