Langford v. Sentry Insurance of Illinois, Inc.

549 N.E.2d 951, 193 Ill. App. 3d 386, 140 Ill. Dec. 300, 1990 Ill. App. LEXIS 24
CourtAppellate Court of Illinois
DecidedJanuary 10, 1990
DocketNo. 5—88—0806
StatusPublished
Cited by6 cases

This text of 549 N.E.2d 951 (Langford v. Sentry Insurance of Illinois, 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
Langford v. Sentry Insurance of Illinois, Inc., 549 N.E.2d 951, 193 Ill. App. 3d 386, 140 Ill. Dec. 300, 1990 Ill. App. LEXIS 24 (Ill. Ct. App. 1990).

Opinion

JUSTICE GOLDENHERSH

delivered the opinion of the court:

Plaintiff, Pat Langford, appeals from an order of the circuit court of Saline County granting the motion to dismiss with prejudice of defendant, Sentry Insurance of Illinois, Inc., pursuant to Supreme Court Rule 103(b) (107 Ill. 2d R. 103(b)). In this cause, plaintiff argues that the circuit court should not have considered the time before the expiration of the statute of limitations in determining reasonable diligence in serving defendant. In addition, plaintiff argues that even if the circuit court did not consider the time before expiration of the statute, it erred in dismissing the cause with prejudice. We reverse and remand.

As an aid to understanding the history of this case, we include the following chronology of its significant events:

July 6,1986

Defendant issued a fire insurance policy to plaintiff on her home in Saline County. The policy issued included the standard one-year contractual limitation during which plaintiff may file suit. Note: The limitation period tolled for 206 days from filing of the proof of loss statement until denial of the claim.

August 9,1986

Fire destroyed plaintiff’s home.

October 6, 1986

Plaintiff submitted a sworn proof of loss statement.

January 28, 1987

An examination under oath was conducted of plaintiff in Harrisburg. Plaintiff and her attorneys were present.

April 30, 1987

Defendant denied plaintiff’s claim on the grounds of misrepresentation regarding the cause of the fire and circumstances of loss. Plaintiff filed her complaint. (This was eight months prior to the expiration of the statute of limitations.) Plaintiff directed summons to the Director of the Illinois Department of Insurance. It was returned unserved.

June 29,1987

The contractual limitation period expired.

March 2,1988

Alias summons issued and mailed to the Sheriff of Du Page County. (This was 8V2 weeks after the expiration of the limitations period.)

April 28,1988

Service on defendant. (This is 10 weeks after the expiration of the limitations period.)

May 16, 1988

On June 14, 1988, defendant filed a motion to dismiss plaintiff’s complaint with prejudice. Defendant alleged that plaintiff failed to use reasonable diligence to serve defendant as required by Rule 103(b). The circuit court, without hearing or oral argument, dismissed the complaint on June 28, 1988. The order, in its entirety, states: “Defendant’s motion, filed 6-14-88, to dismiss the complaint is granted.”

In her motion to set aside the dismissal, plaintiff argued that the circuit court should examine only the time after the expiration of the limitations period to determine whether due diligence had been exercised. The parties submitted memoranda in support of their arguments. On December 19, 1988, the circuit court denied plaintiff’s motion.

Rule 103(b) states:

“(b) Dismissal for Lack of Diligence. If the plaintiff fails to exercise reasonable diligence to obtain service prior to the expiration of the applicable statute of limitations, the action as a whole or as to any unserved defendant may be dismissed without prejudice. If the failure to exercise reasonable diligence to obtain service occurs after the expiration of the applicable statute of limitations, the dismissal shall be with prejudice. In either case the dismissal may be made on the application of any defendant or on the court’s own motion.” 107 Ill. 2d R. 103(b).

The determination of reasonable diligence is traditionally left to the sound discretion of the circuit court. A reviewing court will only interfere when there is an abuse of that discretion. (Hebting v. Miller Brewing Co. (1980), 82 Ill. App. 3d 981, 983, 403 N.E.2d 671, 673; Department of Mental Health v. Kendall (1973), 15 Ill. App. 3d 881, 885, 305 N.E.2d 389, 392; Mosley v. Spears (1970), 126 Ill. App. 2d 35, 40, 261 N.E.2d 510, 513-14.) The circuit court either did consider the time and actions before the expiration of the statute of limitations, or it did not. Either way, the circuit court abused its discretion.

In ruling on a Rule 103(b) motion, a court may not consider the period or activities before the expiration of the statute of limitations. This is self-evident in the rule itself. Rule 103(b) indicates a difference between actions before the statute of limitations runs and those after. The rule provides that prestatute dismissal will be without prejudice, and post-statute dismissal will be with prejudice.

The committee comments to the rule clearly state that the rule was revised in 1969 to provide:

“[A] dismissal with prejudice shall be entered only when the failure to exercise due diligence to obtain service occurred after the expiration of the applicable statute of limitations. Prior to the expiration of the statute, a delay in service does not prejudice a defendant.” (107 Ill. 2d R. 103(b), Committee Comments, at 296.)

The supreme court cited the comments in Aranda v. Hobart Manufacturing Corp. (1977), 66 Ill. 2d 616, 619, 363 N.E.2d 796, 798; see Juechter v. Grace (1977), 55 Ill. App. 3d 606, 608, 371 N.E.2d 179, 181.

A public policy inherent in the rule and its application is to encourage the process of discovery before trial when the claim is not yet stale. To indicate that a court could consider the time and actions before the running of the statute would encourage the filing of claims at the tail end of the statute of limitations so the prestatute time would not be held against a plaintiff. This is clearly contrary to the policy and intent of the rule.

In People ex rel. Powell v. Luttrell (1970), 130 Ill. App. 2d 241, 264 N.E.2d 737, the First District Appellate Court implied a similar result. In Luttrell, the State commenced an action to recover a tax. Service occurred almost 12 ^2 years later. The court reasoned that as there was no applicable statute of limitations, there could be no failure to exercise diligence after the statute of limitations ran. Therefore, dismissal with prejudice was inappropriate. Luttrell, 130 Ill. App. 2d at 245, 264 N.E.2d at 740.

In Department of Mental Health v. Kendall (1973), 15 Ill. App. 3d 881, 305 N.E.2d 389, the court found that the Department failed to exercise due diligence.

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Cite This Page — Counsel Stack

Bluebook (online)
549 N.E.2d 951, 193 Ill. App. 3d 386, 140 Ill. Dec. 300, 1990 Ill. App. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/langford-v-sentry-insurance-of-illinois-inc-illappct-1990.