Mt Hawley Insurance Co. v. Stone Development Group, Inc.

Appellate Court of Illinois·Decided August 27, 2026·No. 1-25-0465·Unpublished

Opinion

2026 IL App (1st) 250465-U

FOURTH DIVISION

Order filed: August 27, 2026

No. 1-25-0465

NOTICE: This order was filed under Supreme Court Rule 23 and is not precedent except in the limited circumstances allowed under Rule 23(e)(1).

IN THE

APPELLATE COURT OF ILLINOIS

FIRST DISTRICT

MT. HAWLEY INSURANCE COMPANY, ) Appeal from the ) Circuit Court of

Plaintiff-Appellee, ) Cook County.

)

v. )

)

STONE DEVELOPMENT GROUP, INC. and CONEY ) ROSAS, as Independent Administrator of the Estate of ) No. 18 CH 13854 Ramiro Godinez, Deceased, )

)

Defendants )

) Honorable

(Coney Rosas, as Independent Administrator of the Estate ) Neil H. Cohen, of Ramiro Godinez, Deceased, Defendant-Appellant). ) Judge, presiding.

JUSTICE QUISH delivered the judgment of the court.

Justices Lyle and Ocasio concurred in the judgment.

ORDER

¶1 Held: The circuit court’s judgment for plaintiff insurance company after a bench trial in this declaratory judgment action is affirmed. The circuit court properly used the dictionary definition of “employee” in determining whether an employee exclusion in a commercial general liability insurance policy applied. The circuit court did not abuse its discretion in admitting a report from the Occupational Safety and Health Administration and a statement by an employee of the insured into evidence.

¶2 Defendant Coney Rosas, administrator of the estate of Ramiro Godinez (“the Estate”), appeals from the judgment of the circuit court of Cook County. After a bench trial, the circuit court found in favor of plaintiff Mt. Hawley Insurance Company (“Mt. Hawley”), finding it had no duty to indemnify its insured, defendant Stone Development Group (“SDG”), under a commercial general liability (“CGL”) insurance policy and excess policy for any liability that SDG incurred as a result of a construction site accident resulting in the death of Ramiro Godinez (“Godinez”). On appeal, the Estate argues that the circuit court’s finding that Godinez was an employee of SDG at the time of his death such that an employee exclusion in the insurance policies applied was against the manifest weight of the evidence. For the following reasons, we affirm.

¶3 This case relates to an underlying wrongful death suit filed by the Estate in the circuit court of Cook County against SDG and others in case number 2018 L 8625 (hereinafter, “the wrongful death case”). The wrongful death case alleged that Godinez was an “invitee” on a construction site in Waukegan on September 19, 2017 when he was directed to the third floor of the building to perform certain carpentry work. While he was unloading tools and materials from a raised forklift, he fell and suffered “catastrophic injuries,” dying on September 25. The Estate alleged that SDG had a duty to exercise reasonable care and caution in the performance, management, control, supervision and inspection of work at the premises and sought damages from SDG due to its alleged negligence resulting in Godinez’s death.

¶4 While the wrongful death case proceeded, Mt. Hawley filed the complaint for declaratory judgment at issue in this appeal, naming both the Estate and SDG as defendants. The complaint alleged that Mt. Hawley issued a CGL insurance policy and a commercial excess liability policy to SDG in effect at the time of Godinez’s death. Relevant to this appeal, the complaint sought a

declaration that Mt. Hawley had no duty to defend or indemnify SDG in the wrongful death case. Mt. Hawley asserted that Godinez was an employee of SDG at the time of his accident, and therefore, it was not required to defend or indemnify SDG in the wrongful death case due to the policy exclusion for liability for bodily injury to employees of SDG.

¶5 The complaint attached a copy of SDG’s CGL policy. Mt. Hawley cited the employee exclusion, which provides that the policy did not apply to “Employer’s Liability:” “Bodily injury” to “an ‘employee’ of the insured arising out of and in the course of: (a) Employment by the insured; or (b) Performing duties related to the conduct of the insured’s business.” The exclusion also applied “whether the insured may be liable as an employer or in any other capacity and to any obligation to share damages with or repay someone else who must pay damages because of the injury.” Mt. Hawley also alleged that its excess policy contained the same exclusion. Mt. Hawley alleged that Godinez was an employee of SDG whose bodily injuries arose out of and in the course of his employment by SDG and thus, the policies provided no coverage to SDG for the wrongful death case.

¶6 The term “employee” appears in the “Definitions” section of the CGL policy and provides that “‘Employee’ includes a ‘leased worker,’” but “does not include a ‘temporary worker.’” The policy defines a “Leased worker” as “a person leased to you by a labor leasing firm under an agreement between you and the labor leasing firm, to perform duties related to the conduct of your business.” The policy defines “Temporary worker” as “a person who is furnished to you to substitute for a permanent ‘employee’ on leave or to meet seasonal or short-term workload conditions.”

¶7 The court stayed this declaratory judgment action on the Estate’s motion while the wrongful death case proceeded. Mt. Hawley provided a defense to SDG in that wrongful death case. That case eventually settled and the Estate, SDG, and Mt. Hawley entered into a memorandum of understanding under which SDG agreed to a $2.65 million judgment against it and Mt. Hawley agreed to pay $250,000 of that judgment. The Estate agreed not to attempt to execute the judgment against SDG other than against Mt. Hawley’s policies and only after final judgment in this declaratory judgment action. The parties agreed to continue to litigate the declaratory judgment action to determine whether Mt. Hawley owed a duty to indemnify SDG under the terms of the CGL and excess policies.

¶8 In this declaratory judgment action, after discovery, Mt. Hawley and the Estate filed cross- motions for summary judgment. In its motion, Mt. Hawley relied on a report created by the Occupational Safety and Health Administration (“OSHA”) after it performed an investigation following Godinez’s death. The Estate filed a motion to strike the OSHA report, arguing that the report contained inadmissible hearsay and did not meet the requirements to be admitted as a public record or report under Rule 803(8) of the Illinois Rules of Evidence. Ill. R. Evid. 803(8) (eff. Jan. 25, 2023). The circuit court denied the motion to strike, finding that the factual findings within the OSHA report fell within the hearsay exception of Rule 803(8), and that statements by SDG employees within the report were admissible as statements by employees of a party opponent. See Ill. R. Evid. 801(d)(2)(D) (eff. Oct. 15, 2015). The circuit court denied both cross-motions for summary judgment on the issue relevant to this appeal, finding a disputed issue of material fact as to whether Godinez was an employee of SDG at the time of his death, such that the employee exclusion in the insurance policy applied.

¶9 Prior to trial, Mt. Hawley and the Estate filed several motions in limine. Relevant to this appeal, the Estate again argued that the OSHA report was not admissible due to hearsay contained within the report and it was not trustworthy. The Estate also argued that a statement taken from Andre Becerra, who worked for SDG and witnessed the accident, was not admissible as a statement by an employee of a party opponent.

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Mt Hawley Insurance Co. v. Stone Development Group, Inc., (Ill. Ct. App. 2026).

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