Muirfield Village-Vernon Hills v. REINKE, JR. AND CO.

810 N.E.2d 235, 284 Ill. Dec. 582, 349 Ill. App. 3d 178
CourtAppellate Court of Illinois
DecidedMay 13, 2004
Docket2-03-0116
StatusPublished
Cited by45 cases

This text of 810 N.E.2d 235 (Muirfield Village-Vernon Hills v. REINKE, JR. AND CO.) 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
Muirfield Village-Vernon Hills v. REINKE, JR. AND CO., 810 N.E.2d 235, 284 Ill. Dec. 582, 349 Ill. App. 3d 178 (Ill. Ct. App. 2004).

Opinion

PRESIDING JUSTICE O’MALLEY

delivered the opinion of the court:

Plaintiffs, Muirfield Village-Vernon Hills, LLC, and Muirfield, LLC, appeal from the circuit court of Lake County’s dismissal, with prejudice of their third amended complaint and the denial of their motion to reinstate and for leave to file a fourth amended complaint. Plaintiffs argue that the third amended complaint stated a claim for contribution against defendants K. Reinke, Jr., & Co., Denk & Roche Builders, Inc., Air-Rite Heating & Cooling, Inc., JMB Electric, Inc., Keystone Mechanical Industries, Inc., and R.M. Sellergren & Associates, Inc., and that the trial court abused its discretion in denying plaintiffs leave to file a fourth amended complaint against defendants. We affirm in part and reverse in part.

The following facts are taken from plaintiffs’ third amended complaint and the record. Muirfield, LLC, acted as the general contractor in the construction of a home for Kerry and Jodi Strain in the subdivision known as Gregg’s Landing. Muirfield Village-Vernon Hills, LLC, was the owner of the project. Defendants, as subcontractors, all provided services to Muirfield, LLC, in the construction of the Strain home. Reinke provided insulation installation, Denk & Roche provided siding and carpentry services, Sellergren provided drywall and drywall installation, Air-Rite provided heating, ventilation, flashing, and air conditioning installation, JMB Electric provided services related to the electrical systems, and Keystone provided services related to the plumbing systems.

During the construction of the Strains’ home, one or more of defendants allowed an excess of moisture into the interior areas of the home. They either failed to close up the house during construction or failed to keep the materials dry prior to installation. This led to the growth of mold and bacteria within the Strains’ home. On January 13, 2000, the Strains took possession of the home and moved in. About two months later, the Strains detected a putrid odor in their home. On July 26, 2000, the Strains were advised to vacate the home due to the presence of abnormally high levels of mold and bacteria in the home. In addition to moving out of their home, the Strains experienced damages to their personal effects.

On June 19, 2000, the Strains filed suit against Reinke and Denk & Roche, alleging that they had negligently installed wet or saturated insulation or carpentry materials in their home, which led to the growth of unacceptably high levels of mold and bacteria. The Strains and various Muirfield entities and agents entered into mediation in an attempt to resolve the suit. On September 22, 2000, the Strains, plaintiffs, Zale Homes, and Hearthstone Advisors entered into a handwritten settlement agreement whereby plaintiffs, Zale Homes, and Hearthstone Advisors would buy back the Strains’ home, pay $59,000 for other costs and damages to the Strains, and pay Arnica Insurance Company, the Strains’ insurer, $49,200 in exchange for the release from liability of Muirfield, LLC, Muirfield Village-Vernon Hills, LLC, Zale Homes, and Hearthstone Advisors, and the assignment to those entities of all of the Strains’ legal rights. (Zale Homes and Hearthstone Advisors are not parties to this appeal.)

On October 25, 2001, plaintiffs filed their first amended complaint. This complaint added Air-Rite, JMB Electric, Sellergren, and Keystone as parties defendant, and substituted plaintiffs, both individually and as assignees of the Strains, as parties plaintiff. The first amended complaint set forth three claims against each of the six defendants, alleging the negligence of each individual defendant in the performance of its particular work, alleging negligence against all defendants for failing to properly secure and protect the home from the intrusion of moisture, and alleging breach of contract against each defendant for failing to procure insurance. The settlement agreement between plaintiffs and the Strains was not attached to the first amended complaint. Instead, plaintiffs alleged the existence of the settlement agreement, that it was confidential, and that the Strains had assigned their rights to “Muirfield.”

On April 25, 2002, plaintiffs filed their second amended complaint: This complaint alleged three counts against each defendant, namely, negligent construction, breach of contract for failing to procure insurance, and “contractual contribution.” In addition, plaintiffs again did not attach the settlement agreement to the complaint. Instead, plaintiffs alleged the existence of a confidential settlement agreement with the Strains, and quoted language from the agreement by which the Strains released “Muirfield [sic]-Vernon Hills, LLC, Muirfield, LLC, Zale Homes and Hearthstone Advisors” and their subcontractors. Defendants filed motions to dismiss the second amended complaint. In addition, defendants sought to compel plaintiffs to disclose the terms of the settlement agreement with the Strains.

The trial court dismissed the second amended complaint in its entirety, but gave plaintiffs the opportunity to file a third amended complaint. In addition, the trial court ordered plaintiffs to produce the settlement agreement to defendants. The parties agreed to the entry of a protective order against the disclosure of any settlement agreements, releases, or other settlement documents. On October 1, 2002, after plaintiffs failed to file their third amended complaint within the trial court’s original time limit, they were granted leave, over defendants’ objections, to file the third amended complaint.

This complaint contained only one count for contribution against each defendant. Additionally, plaintiffs attached a typed document entitled “settlement release,” which was executed in July and August of 2002. The document was signed by the Strains and their insurer, but not by plaintiffs. The parties released in this document included “Muirfield-Vernon Hills, LLC, sometimes referred to as Muirfield Village-Vernon Hills, LLC, and Muirfield, LLC, their related companies *** including Zale Homes and Hearthstone Advisors, Inc.” In addition, each defendant was expressly released by name. Defendants moved to dismiss the third amended complaint on the grounds that (1) substituting the 2002 settlement release document for the September 22, 2001, settlement agreement was contrary to the “mend-the-hold” doctrine, (2) plaintiffs did not allocate the amounts that each paid in the settlement with the Strains, making it impossible to determine whether any plaintiff or other Muirfield entity paid more than its pro rata share of liability, and (3) plaintiffs could not recover in tort any of the amounts paid to the Strains for the buyback of their home as these sums constituted economic losses. On December 3, 2002, the trial court expressly denied the portions of the motions to dismiss relying on the “mend-the-hold” doctrine, and granted with prejudice the portions of the motions to dismiss based on plaintiffs’ failure to plead a claim in contribution and on the economic loss rule. Apparently, at that point, plaintiffs orally moved for leave to file a fourth amended complaint. This oral motion was denied.

On January 2, 2003, plaintiffs filed a motion to reinstate their cause of action and for leave to file a fourth amended complaint. Plaintiffs attached a copy of the proposed fourth amended complaint to their motion.

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

Related

Tollaksen v. Stunkard
Appellate Court of Illinois, 2026
Villa Financial Services, LLC v. Underwriters at Lloyd's of London
2025 IL App (1st) 250754-U (Appellate Court of Illinois, 2025)
Kaur v. Fischel & Kahn, Ltd.
2025 IL App (1st) 241667-U (Appellate Court of Illinois, 2025)
Zemater v. The County of DeKalb
2022 IL App (2d) 210471-U (Appellate Court of Illinois, 2022)
BCBSM, Inc. v. Walgreen Co.
N.D. Illinois, 2022
Foulks v. Community Unit School District 428
2021 IL App (2d) 200461-U (Appellate Court of Illinois, 2021)
McAnelly v. Gulley
2021 IL App (5th) 200226-U (Appellate Court of Illinois, 2021)
Stanila v. Joe
2020 IL App (1st) 191890 (Appellate Court of Illinois, 2020)
Brennan v. Travelers Home & Marine Insurance Co.
2016 IL App (1st) 152830 (Appellate Court of Illinois, 2016)
Brennan v. Travelers Home and Marine Insurance Company
2016 IL App (1st) 152830 (Appellate Court of Illinois, 2016)
Sadler v. Pella Corp.
146 F. Supp. 3d 734 (D. South Carolina, 2015)
Gajda v. Steel Solutions Firm, Inc.
2015 IL App (1st) 142219 (Appellate Court of Illinois, 2015)
In re Marriage of Brown
2015 IL App (5th) 140062 (Appellate Court of Illinois, 2015)
Fabian v. BGC Holdings, LP
2014 IL App (1st) 141576 (Appellate Court of Illinois, 2015)
Federal Insurance v. J.K. Manufacturing Co.
933 F. Supp. 2d 1065 (N.D. Illinois, 2013)
Donovan v. County of Lake
951 N.E.2d 1256 (Appellate Court of Illinois, 2011)

Cite This Page — Counsel Stack

Bluebook (online)
810 N.E.2d 235, 284 Ill. Dec. 582, 349 Ill. App. 3d 178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/muirfield-village-vernon-hills-v-reinke-jr-and-co-illappct-2004.