O'CONNOR v. Pinto Trucking Service, Inc.

501 N.E.2d 263, 149 Ill. App. 3d 911, 103 Ill. Dec. 242, 1986 Ill. App. LEXIS 3126
CourtAppellate Court of Illinois
DecidedNovember 18, 1986
Docket85-3241
StatusPublished
Cited by26 cases

This text of 501 N.E.2d 263 (O'CONNOR v. Pinto Trucking Service, 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
O'CONNOR v. Pinto Trucking Service, Inc., 501 N.E.2d 263, 149 Ill. App. 3d 911, 103 Ill. Dec. 242, 1986 Ill. App. LEXIS 3126 (Ill. Ct. App. 1986).

Opinion

JUSTICE HARTMAN

delivered the opinion of the court:

We are asked to review an order dismissing a countercomplaint due to certain defendants-counterdefendants having entered into a settlement agreement with plaintiffs. The issues raised include whether: (1) the circuit court erred in dismissing from the lawsuit one of the defendants-counterdefendants in light of its settlement with plaintiffs; (2) defendants-counterplaintiffs waived their appellate arguments that the settlement agreement was not in good faith; and (3) the Contribution Act (Act) (Ill. Rev. Stat. 1985, ch. 70, par. 301 et seq.) is unconstitutional in that it deprived defendants-counter-plaintiffs of a remedy.

On May 14, 1981, John O’Connor was killed when his car crashed into the rear of a semitrailer parked on the north side of West Irving Park Road in the 8100 block. The semitrailer was manufactured by defendant-counterdefendant, Gindy Manufacturing Company (a/k/a the Budd Company) (Budd), and sold to Ryder Truck Rental (Ryder) in September 1970. In 1976 Ryder sold the trailer to Lapadola Air Freight Transfer, Inc., which, in 1977, sold it to defendant-counterplaintiff, Pinto Trucking Service, Inc. (Pinto). In 1980 Pinto sold the trailer to defendant-counterplaintiff, ATC Leasing Corp. (ATC), which in turn leased it back to Pinto.

John Szetela, also a defendant-counterplaintiff, owned the tractor which pulled the semitrailer and was responsible for having parked it, allegedly as an agent of Pinto and ATC. Defendant-counter-defendant, city of Chicago, was responsible for lighting the south half of Irving Park Road. The city limits apparently extended from the south curb only to the center of the street.

On December 29, 1982, O’Connor’s widow and his estate filed suit against Pinto, Szetela, Budd, and the city. On May 13, 1983, plaintiffs filed a first amended complaint adding ATC, Ryder, and Lapadola as defendants. The complaint’s first eight counts alleged various acts of negligence and wilful and wanton misconduct against Pinto, ATC, Szetela, and the city. Three additional counts sounded in strict products liability and res -ipsa loquitur against Budd, Ryder, and Lapadola. On September 20, 1984, plaintiffs filed a second amended complaint alleging additional counts in res ipsa loquitur against Pinto, ATC, Szetela, and the city. The primary allegations in the complaint concerned inadequate lighting on the street, madequate lighting on the parked trailer, and improper placement of the “DOT bar” (bumper) on the rear of the semitrailer. The complaint asked for in excess of $7 million in damages.

On October 12, 1984, the semitrailer manufacturer, Budd, answered the second amended complaint asserting the statute of repose as an affirmative defense, as well as comparative negligence and assumption of risk as additional affirmative defenses. Budd moved to dismiss the res ipsa loquitur count against it and also filed a motion for summary judgment with respect to the strict-liability count. While these motions were still pending, on April 25, 1985, plaintiffs offered to settle with Budd, Ryder, and the city for $75,000. Budd had previously offered a settlement of $5,000; however, on June 25, 1985, Budd agreed to pay $15,000 in settlement. Ryder and the city settled for smaller amounts.

On June 5, 1985, Pinto, Szetela, and ATC filed counterclaims for contribution against Budd, Ryder, and the city.

On July 1, 1985, plaintiffs dismissed their counts against Budd, Ryder, and the city in accordance with the settlement agreement. Budd, Ryder, and the city thereafter filed motions to dismiss the counterclaims, contending that the settlement was reached in good faith. On September 19, 1985, defendants-counterplaintiffs objected to the settlement contending that it was unreasonably low and entered into in bad faith. Following a hearing on October 3, 1985, the circuit court granted the dismissal of the counterclaims against Budd, Ryder, and the city and dismissed them from the action.

Defendants Pinto, Szetela, and ATC appeal the dismissal of Budd, but not of Ryder and the city.

For greater facility in understanding the positions of the various parties, we set forth the following table:

PLAINTIFFS: ESTATE OF O’CONNOR (decedent’s estate)

CATHERINE O’CONNOR (decedent’s wife)

v.

DEFENDANTS: ATC (owner/lessor of the semitrailer)

PINTO (lessee of the semitrailer)

SZETELA (operator of the semitrailer)

BUDD (GINDY) (manufacturer of the semitrailer)

RYDER (previous owner of the semitrailer)

LAPADOLA (previous owner of the semitrailer) 1

CITY OF CHICAGO (responsible for lighting part of the street)

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I

Pinto initially contends that the settlement between Budd and plaintiffs is invalid.

Public policy favors peaceful and voluntary resolutions of claims through settlement agreements (Wasmund v. Metropolitan Sanitary District (1985), 135 Ill. App. 3d 926, 928, 482 N.E.2d 351); therefore, the greater burden of producing clear and convincing evidence to establish the invalidity of a settlement agreement is imposed. (135 Ill. App. 3d 926, 928, 482 N.E.2d 351.) In the case sub judice, the settlement agreement is under attack because Pinto, under the Contribution Act, would be denied contribution from the settling defendants-counterdefendants Budd, Ryder, and the city. The protection from contribution of parties who settle is an essential part of the statutory scheme to foster certainty and encourage good-faith settlements. Ballweg v. City of Springfield (1986), 114 Ill. 2d 107; Rakowski v. Lucente (1984), 104 Ill. 2d 317, 325, 472 N.E.2d 791; Perez v. Espinoza (1985), 137 Ill. App. 3d 762, 765, 484 N.E.2d 1232, appeal denied (1986), 111 Ill. 2d 579.

Section 2 of the Act (Ill. Rev. Stat. 1985, ch. 70, par. 302) creates a right of contribution between joint tortfeasors in favor of one who has paid more than his pro rata share as premised upon his individual culpability. (Wasmund v. Metropolitan Sanitary District (1985), 135 Ill. App. 3d 926, 928, 482 N.E.2d 351.) An alleged tortfeasor who settles with a claimant in good faith, however, is discharged from all contribution liability. Ill. Rev. Stat. 1985, ch. 70, par. 302(d); Wasmund v. Metropolitan Sanitary District (1985), 135 Ill. App. 3d 926, 928-29, 482 N.E.2d 351; LeMaster v. Amsted Industries, Inc. (1982), 110 Ill. App. 3d 729, 734,

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Bluebook (online)
501 N.E.2d 263, 149 Ill. App. 3d 911, 103 Ill. Dec. 242, 1986 Ill. App. LEXIS 3126, Counsel Stack Legal Research, https://law.counselstack.com/opinion/oconnor-v-pinto-trucking-service-inc-illappct-1986.