Pekin Insurance Co. v. Rydzewski

2025 IL App (3d) 240358-U
CourtAppellate Court of Illinois
DecidedAugust 4, 2025
Docket3-24-0358
StatusUnpublished

This text of 2025 IL App (3d) 240358-U (Pekin Insurance Co. v. Rydzewski) 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
Pekin Insurance Co. v. Rydzewski, 2025 IL App (3d) 240358-U (Ill. Ct. App. 2025).

Opinion

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).

2025 IL App (3d) 240358-U

Order filed August 4, 2025 ____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

THIRD DISTRICT

PEKIN INSURANCE COMPANY, ) Appeal from the Circuit Court ) of the 12th Judicial Circuit, Plaintiff-Appellee, ) Will County, Illinois, ) v. ) ) MICHELLE RYDZEWSKI, as the Administratrix ) of the Estate of ELECTRA ROUMELIOTIS, ) Deceased, and BENJAMIN GRAUNKE, ) ) Defendants, ) ) (Benjamin Graunke, Defendant-Appellant). ) _________________________________________ ) ) Appeal No. 3-24-0358 PROGRESSIVE NORTHERN INSURANCE ) Circuit No. 21-MR-1861 COMPANY, ) ) Intervenor-Counter-Plaintiff-Appellee, ) ) v. ) ) MICHELLE RYDZEWSKI, as the Administratrix ) of the Estate of ELECTRA ROUMELIOTIS, ) Deceased, and BENJAMIN GRAUNKE, ) ) Counter-Defendants, ) ) Honorable (Benjamin Graunke, Counter-Defendant- ) John C. Anderson, Appellant). ) Judge, Presiding. ____________________________________________________________________________

JUSTICE DAVENPORT delivered the judgment of the court. Justices Holdridge and Bertani concurred in the judgment. ____________________________________________________________________________

ORDER

¶1 Held: The circuit court erred in granting summary judgment to auto insurance companies. Genuine issues of material fact existed as to (1) whether at-fault driver’s vehicle use was permissive and (2) whether the driver was a resident relative under her stepfather’s insurance policy. Reversed and remanded.

¶2 A single-vehicle rollover accident resulted in the driver’s death and injuries to the

passenger, Benjamin Graunke, who later obtained a money judgment against the driver’s estate.

Plaintiff, Pekin Insurance Company (Pekin), and intervenor, Progressive Northern Insurance

Company (Progressive) sued the driver’s estate and Graunke (defendants), seeking a declaratory

judgment that the estate was not entitled to coverage. The circuit court entered summary judgment

in favor of Pekin and Progressive, finding the driver was a nonpermissive user of the vehicle.

Because genuine issues of material fact exist, we reverse and remand the cause for further

proceedings.

¶3 I. BACKGROUND

¶4 On July 18, 2017, Electra Roumeliotis died after she lost control of a sports vehicle leased

to Mito’s Euro Design, Inc. (MED). Electra’s sole passenger, Graunke, survived the accident.

Milos Sopko, MED’s owner, had delivered the vehicle to the home of Electra’s mother, Michelle

Rydzewski (Michelle), hours before the accident. MED’s vehicles were insured under a Pekin-

issued policy; and Electra’s name was included in a policy Progressive had issued to her stepfather,

Lawrence Rydzewski (Lawrence).

¶5 A. Underlying Action

2 ¶6 In April 2018, Graunke sued (1) Michelle, as the administrator of Electra’s estate (Estate),

and (2) MED. Graunke alleged Electra negligently injured him, both in her individual capacity and

as MED’s agent. In particular, he alleged Electra drove off the roadway at an excessive speed and

struck a fire hydrant, causing the vehicle to roll over and injure him. He further alleged MED

negligently entrusted the vehicle to Electra when it knew or should have known that she was

intoxicated and incompetent to drive the vehicle. Both Pekin and Progressive defended the Estate

under a reservation of rights.

¶7 The trial court granted summary judgment in favor of MED, and the case proceeded to a

trial against the Estate. In January 2023, Graunke was awarded a $330,118.57 judgment against

the Estate.

¶8 B. Current Action

¶9 1. Pekin’s Complaint

¶ 10 In July 2021, Pekin filed a declaratory judgment action against Graunke and the Estate,

alleging it owed no duty to defend the Estate under MED’s business auto insurance policy.

¶ 11 The policy’s liability section states that Pekin “will pay all sums the insured legally must

pay as damages because of bodily injury *** caused by an accident and resulting from the *** use

of a covered auto.” The policy’s omnibus provision expands the definition of “insured” to include

anyone using a covered auto with the named insured’s permission (with exceptions that do not

apply here).

¶ 12 Pekin does not dispute that the vehicle involved in the accident, a Lexus RC F, was a

“covered auto.” It alleges, however, that Electra was not an insured under the policy, because

MED’s owner, Sopko, never permitted her to use the Lexus.

¶ 13 2. Progressive’s Crossclaim

3 ¶ 14 In March 2023, the circuit court allowed Progressive to intervene. See 735 ILCS 5/2-408

(West 2022). Progressive filed a crossclaim for declaratory judgment against Graunke and the

Estate, alleging it owed no coverage under Lawrence’s auto insurance policy.

¶ 15 The policy generally requires Progressive to “pay damages for bodily injury *** for which

an insured person becomes legally responsible because of an accident.” Its definition of “insured

person” includes a “relative” involved in an automobile accident. A “relative,” in turn, is defined

as a person (1) “related to you by blood, marriage or adoption,” including a stepchild, and

(2) “residing in the same household as you”; if temporarily away from home, unmarried dependent

children “qualify as a relative if they intend to continue to reside in your household.” The policy

defines “you” and “your” as the named insured, and includes the named insured’s spouse “if

residing in the same household at the time of the loss.”

¶ 16 The insuring agreement provides, “Your policy consists of the policy contract, your

insurance application, the declarations page, and all endorsements to this policy.” The declarations

page designates Lawrence as the named insured; it lists Lawrence, Michelle, and Electra as

“drivers and resident relatives”; it lists a Range Rover and a BMW 230 as covered autos; and it

notes that a premium discount was applied due to Electra’s status as a distant student. The policy

was renewed on May 31, 2017, and indicates Michelle requested on that date a change in coverage

on the Range Rover, and to swap out a Kia Soul for a BMW 230.

¶ 17 Initially, the crossclaim provided only one basis for excluding coverage—that Electra was

a nonpermissive driver of a noncovered vehicle. The policy expressly excludes coverage for bodily

injury arising out of the use of a noncovered vehicle without the permission of “the owner of the

vehicle or the person in lawful possession of the vehicle.” Progressive later amended its crossclaim

4 to add a second basis—that Electra was not a resident relative under the policy because she did not

reside with either parent, particularly Lawrence, for several months before the accident.

¶ 18 3. Motions for Summary Judgment

¶ 19 In August 2023, Pekin and Progressive moved separately for summary judgment (735

ILCS 5/2-1005 (West 2022)). Pekin argued it owed no coverage to the Estate because the

undisputed facts showed Sopko did not permit Electra to drive the Lexus. Progressive argued it

owed no coverage because Electra was not a permissive user and was not a resident relative of

Lawrence at the time of the accident.

¶ 20 Pekin’s motion attached the deposition transcripts of Michelle, Sopko, Jacqueline Milton,

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

Related

In Re Estate of Holmgren
604 N.E.2d 1092 (Appellate Court of Illinois, 1992)
Hobbs v. Hartford Ins. Co. of the Midwest
823 N.E.2d 561 (Illinois Supreme Court, 2005)
Clay v. Illinois District Council of Assemblies of God Church
657 N.E.2d 688 (Appellate Court of Illinois, 1995)
People v. Lawler
568 N.E.2d 895 (Illinois Supreme Court, 1991)
Gunn v. Sobucki
837 N.E.2d 865 (Illinois Supreme Court, 2005)
People v. Durham
708 N.E.2d 1249 (Appellate Court of Illinois, 1999)
U.S. Bank v. Lindsey
920 N.E.2d 515 (Appellate Court of Illinois, 2009)
Gallagher v. Lenart
874 N.E.2d 43 (Illinois Supreme Court, 2007)
Safeway Insurance Co. v. Harvey
343 N.E.2d 679 (Appellate Court of Illinois, 1976)
People v. Connolly
942 N.E.2d 71 (Appellate Court of Illinois, 2011)
Balma v. Henry
935 N.E.2d 1204 (Appellate Court of Illinois, 2010)
GUSKI v. Raja
949 N.E.2d 695 (Appellate Court of Illinois, 2011)
People v. $5,608 United States Currency
835 N.E.2d 920 (Appellate Court of Illinois, 2005)
Country Mutual Insurance Company v. Hilltop View, LLC
2013 IL App (4th) 130124 (Appellate Court of Illinois, 2013)
Lacey v. Perrin
2015 IL App (2d) 141114 (Appellate Court of Illinois, 2015)
Novicki v. Department of Finance
26 N.E.2d 130 (Illinois Supreme Court, 1940)
People v. Garner
2016 IL App (1st) 141583 (Appellate Court of Illinois, 2016)
State Farm Mutual Automobile Insurance Co. v. Plough
2017 IL App (2d) 160307 (Appellate Court of Illinois, 2017)
People v. Peterson
2017 IL 120331 (Illinois Supreme Court, 2017)
State Farm Mutual Automobile Insurance Co. v. Bierman
2019 IL App (5th) 180426 (Appellate Court of Illinois, 2019)

Cite This Page — Counsel Stack

Bluebook (online)
2025 IL App (3d) 240358-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pekin-insurance-co-v-rydzewski-illappct-2025.