Lokey v. State Farm Mutual Automobile Insurance

614 N.E.2d 543, 245 Ill. App. 3d 80, 185 Ill. Dec. 409, 1993 Ill. App. LEXIS 744
CourtAppellate Court of Illinois
DecidedMay 27, 1993
DocketNo. 4-92-0939
StatusPublished
Cited by1 cases

This text of 614 N.E.2d 543 (Lokey v. State Farm Mutual Automobile Insurance) 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
Lokey v. State Farm Mutual Automobile Insurance, 614 N.E.2d 543, 245 Ill. App. 3d 80, 185 Ill. Dec. 409, 1993 Ill. App. LEXIS 744 (Ill. Ct. App. 1993).

Opinion

JUSTICE McCULLOUGH

delivered the opinion of the court:

Plaintiff Lucille Lokey, administrator and administrator to collect of the estate of Gladys Van Buskirk, appeals from the order of the circuit court of McLean County dismissing plaintiff’s complaint for declaratory judgment against defendant State Farm Mutual Automobile Insurance Company. The only issue raised in this appeal is whether the trial court misapplied a Virginia statute requiring notice to an insurer that a claim for uninsured motorist coverage would be made by service of a copy of the process in an action against the owner or operator of the uninsured vehicle so as to enable the insurer to plead, and otherwise take part in, the action in the name of the owner or operator of the uninsured vehicle, or in its own name, where the statute expressly stated that it did not prevent the owner or operator of the uninsured vehicle from employing counsel of his own choosing and taking any action in his own interest in connection with the proceeding. We affirm.

On July 8, 1984, Van Buskirk was a passenger in an automobile driven by David H. Kilgore, the son of the owner David R. Kilgore. Both Kilgores were residents of Virginia, the vehicle was licensed in Virginia, and it was insured under a policy issued by defendant in Virginia. On July 8, 1984, the automobile driven by David H. Kilgore and in which Van Buskirk was a passenger was involved in a collision with a vehicle owned and operated by Earl Bowling, a resident of Kentucky and an uninsured motorist. The collision occurred in Kentucky. As a result of the accident, Van Buskirk was injured and eventually died after 12 days in the hospital.

On December 14, 1984, plaintiff’s attorneys notified defendant, in writing, of a claim on behalf of Van Buskirk. Correspondence and telephone calls between plaintiff and defendant continued. In these communications, defendant relied on a dispute over whether the Kentucky statute of limitations had expired in refusing to meet plaintiff’s demand for payment. On or about January 18, 1989, a judgment was entered in favor of plaintiff against Bowling in the amount of $100,000, in the United States District Court for the Eastern District of Kentucky (Lokey v. Bowling (E.D. Ken. Jan. 18, 1989), No. 86 — 168 (unpublished decision)). On March 19, 1991, the present action was filed in Cook County as No. 91 — CH—2491; that court transferred the case to McLean County on December 18, 1991, and it was redocketed as case No. 92 — CH—8. Service pursuant to the Virginia Code, in the Federal District Court in Lokey v. Bowling, was accomplished on October 21, 1992, over three years after the entry of the final judgment against Earl Bowling, the uninsured motorist.

The subject insurance policy recites that payment under the uninsured motorist provision will be made in accordance with section 38.1 — 381 of the Code of Virginia (Virginia Code) (now Va. Code Ann. §38.2 — 2206 (1990)). Section 38.1 — 381(e)(l) of the Virginia Code (now Va. Code Ann. §38.2 — 2206(F) (1990)) provides:

“If any action is instituted against the owner or operator of an uninsured or underinsured motor vehicle by any insured intending to rely on the uninsured or underinsured coverage provision or endorsement of this policy under which the insured is making a claim, then the insured shall serve a copy of the process upon this insurer in the manner prescribed by law, as though the insurer were a party defendant. The provisions of §8.01 — 288 shall not be applicable to the service of process required in this subsection. The insurer shall then have the right to file pleadings and take other action allowable by law in the name of the owner or operator of the uninsured or underinsured motor vehicle or in its own name. Nothing in this subsection shall prevent the owner or operator of the uninsured motor vehicle from employing counsel of his own choice and taking any action in his own interest in connection with the proceeding.” (Emphasis added.)

Based on plaintiff’s noncompliance with the statute, the instant declaratory judgment action was dismissed.

Defendant’s motion to dismiss in this case was made pursuant to section 2 — 619(a)(9) of the Code of Civil Procedure (Code) (Ill. Rev. Stat. 1991, ch. 110, par. 2-619(a)(9) (now 735 ILCS 5/2-619(a)(9) (West 1992))). Section 2 — 619(a)(9) of the Code allows for the filing of a motion for involuntary dismissal based on affirmative matter avoiding the legal effect of or defeating the plaintiff’s claim. If the ground for dismissal is not evident from the face of the pleading, affidavits may be submitted in support of the motion. Ill. Rev. Stat. 1991, ch. 110, par. 2 — 619(a) (now 735 ILCS 5/2-619(a) (West 1992)).

The test for determining the propriety of granting the motion to dismiss is whether it appears no set of facts may be proved so as to entitle plaintiff to recover from defendant. (Toys “R” Us, Inc. v. Adelman (1991), 215 Ill. App. 3d 561, 564, 574 N.E.2d 1328, 1330; Michel v. Gard (1989), 181 Ill. App. 3d 630, 635-36, 536 N.E.2d 1375, 1379.) In the case at bar, the facts are not controverted. As stated heretofore, it is clear defendant was not served as a party defendant in the Federal case against Bowling prior to the entry of judgment. Service by a deputy sheriff was made on October 21,1992.

Plaintiff’s first contention is that the case of Glens Falls Insurance Co. v. Stephenson (1988), 235 Va. 420, 367 S.E.2d 722, is directly on point and directs that there is no time limit prescribed for service in section 38.1 — 381(e)(l) of the Virginia Code. It is plaintiff’s argument that the trial court in this case improperly construed the statute as having such a time limit. Plaintiff contends that the requirement that such service be before judgment — at a time when defendant could have had an opportunity to actually participate in the proceeding against the uninsured motorist — is not specifically set forth in the statute.

The specific question considered in Glens Falls was whether the statute required service to be accomplished within the limitations period for filing an action against a tortfeasor. The Virginia Supreme Court decided that question as follows:

“Describing itself as ‘the functional equivalent of a party defendant,’ Glens Falls concludes that it is entitled to all the benefits accorded to a party defendant, including the right to plead the statute of limitations. The language of the statute upon which Glens Falls relies does not support its argument. The phrase ‘in the manner prescribed by law’ modifies the words ‘shall serve,’ indicating a clear legislative intent to limit the requirement to the manner of service of process, specifically described elsewhere in the Code. Nowhere in the language of Code §38.1 — 381 do we find any mention of a time period within which service is to be made. If the legislature had intended to create a limitation of time for such service, we think it would have done so in explicit language.

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Cite This Page — Counsel Stack

Bluebook (online)
614 N.E.2d 543, 245 Ill. App. 3d 80, 185 Ill. Dec. 409, 1993 Ill. App. LEXIS 744, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lokey-v-state-farm-mutual-automobile-insurance-illappct-1993.