Reiter v. Illinois National Casualty Co.

9 N.E.2d 358, 291 Ill. App. 30, 1937 Ill. App. LEXIS 455
CourtAppellate Court of Illinois
DecidedJune 28, 1937
DocketGen. No. 39,415
StatusPublished
Cited by3 cases

This text of 9 N.E.2d 358 (Reiter v. Illinois National Casualty 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
Reiter v. Illinois National Casualty Co., 9 N.E.2d 358, 291 Ill. App. 30, 1937 Ill. App. LEXIS 455 (Ill. Ct. App. 1937).

Opinion

Mr. Presiding Justice O’Connor

delivered the opinion of the court.

T. H. Reiter filed his complaint in chancery against the Illinois National Casualty Company, a corporation, Claude H. Barr, Arthur M. Fitzgerald, Ernest Palmer, and the Fidelity and Deposit Company of Maryland, a corporation, the gist of which is, as stated by counsel for defendants, that he was divested of his stock in' the Illinois National Casualty Company and its affiliates by Ernest Palmer, Director of Insurance of Illinois, as a result of a conspiracy entered into by Palmer, Barr and Fitzgerald, and that they have wrongfully, fraudulently and unlawfully converted the stock to their own use, and he prays that the stock be returned to him or that he be awarded damages for its conversion.

Each of the defendants entered a special and limited appearance and a written motion to dismiss the suit, “for want of jurisdiction and want of venue.” Barr, Fitzgerald and Palmer, as ground for their motion, set up (1) that each of them was served with summons in Sangamon county where they were at all times residents; (2) that the transaction out of which plaintiff’s alleged cause of action arose took place in Sangamon county and not in- Cook'county; (3) that the complaint failed to state any joint cause of action against the five defendants; (4) that it failed to state any cause of action against the Casualty Company or the Fidelity and Deposit Company; and (5) that the Casualty Company and the Fidelity Company were joined as defendants without “prohable cause and in good faith for the purpose of obtaining a judgment against either of them, but solely for the purpose of fixing venue against the individual defendants in Cook county rather than in Sangamon county.”

The Illinois National Casualty Company, as ground for its motion to dismiss, set up (1) that it was a “newly consolidated company, never was a resident of or had offices in Cook County.” and that it was served with process in Sangamon County; (2) that section 8 of the Civil Practice Act [Ill. State Bar Stats. 1935, ch. 110, ¶ 136; Jones Ill. Stats. Ann. 104.008], which provides that suits might be brought against insurance companies incorporated or doing business in Illinois, in any county where the plaintiff resided, did not apply to the instant case but only to suits upon insurance policies and that it was not a proper party to the suit because no cause of action was shown against it. The Fidelity and Deposit Company’s motion to dismiss was upon the ground that it was a nonresident of Illinois, and all of the other defendants were residents of Sangamon county and were served with summons in that county where plaintiff’s alleged cause of action arose, and that it was joined as a defendant for the sole purpose of fixing the venue in Cook county; that the complaint did not allege any cause of action against it, but the only allegations were that it was surety on Palmer’s official bond as Director of Insurance, and that the wrongful acts alleged against him were not his official acts.

The court sustained the motion of each defendant, dismissed the suit, and plaintiff appeals.

The complaint takes up more than 46 pages of the abstract and therefore is not in accordance with the provisions of section 33 of the Civil Practice Act, Ill. State Bar Stats. 1935, ch. 110, ¶ 161; Jones Ill. Stats. Ann. 104.033, which requires that all pleadings “shall contain a plain and concise statement of the pleader’s cause of action,” nor is it in accordance with the old rules of pleading which were substantially the same as required by section 33. Kelly v. Boettcher, 85 Fed. 55.

The allegations of the complaint, so far as it is necessary to state them here, are that plaintiff owned a majority of the stock of the Illinois National Casualty Company; that in December, 1932, Palmer, as Director of Insurance of Illinois, caused an audit of the company to be made, which audit was completed in January, 1933, and showed the company to be in good financial condition, having a surplus over and above its liabilities of $230,000; that in February, 1933, the Illinois National Casualty Company was preparing its annual report to be submitted to Palmer as Director of Insurance; that at that time Barr visited Chicago and discussed the matter of the financial statement with plaintiff and a Mr. Winzer (employed by the Casualty Company) who prepared such annual reports, and Barr stated that the financial statement should, if possible, show that the Casualty Company held some Liberty bonds; that this would indicate that the Casualty Company was in a liquid condition and able to pay its' claims, and in this way its agents could meet competition more readily; that on February 28, 1933, plaintiff at Winzer’s request called at the latter’s office where Winzer handed to plaintiff the annual financial statement in blank form to be signed by plaintiff, as president of the Casualty Company, saying that the report had to be filed with the insurance department by March 1, 1933; that thereupon plaintiff signed the blank form of statement, understanding and believing that the report would be properly completed: by Winzer; that plaintiff heard nothing further about-the matter until May 8th following, when an examiner of the insurance department called at the Casualty Company’s office in Chicago to examine the securities shown by the annual financial statement, and particularly .requested to see the $15,000 worth of United States Liberty bonds which the annual statement showed. Plaintiff expressed surprise and said that the Casualty Company never had any Liberty bonds, and referred the examiner to Winzer for an explanation; that the next day, May 9th, plaintiff received at Chicago a telegram from Palmer as Director of Insurance, directing plaintiff to appear on the next day at Palmer’s office in Springfield, and in compliance therewith plaintiff called on Palmer at Springfield, where a conference was held at which plaintiff, Barr, Fitzgerald and Palmer were present. Plaintiff was interrogated about the Liberty bonds and was then told by Palmer to produce $100,000 in cash or securities within two. days; that plaintiff protested the time was too short to raise such a large amount when the amount of Liberty bonds was only $15,000.

It is further alleged in the complaint that the Casualty Company and a number of its affiliates, in which plaintiff was also largely interested, would have to be reorganized; that the Casualty Company would have to be rehabilitated and stabilized, and that if plaintiff would assign and turn over to Palmer his stock in the Casualty Company and its affiliates until the rehabilitation or stabilization had been completed, then Palmer would return to plaintiff his property; that afterward plaintiff complied'with Palmer’s request and assigned his stock in the Casualty Company and its affiliates to Palmer in trust; that afterward there was a consolidation between the Casualty Company and the United States Underwriters Company and a new charter was issued by the Secretary of State to a new corporation known as the Illinois National Casualty Company (being the same name as the old company) on October 1, 1933.

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Related

Reiter v. Illinois Nat. Cas. Co.
213 F.2d 946 (Seventh Circuit, 1954)
Reiter v. Illinois National Casualty Co.
65 N.E.2d 830 (Appellate Court of Illinois, 1946)
Village of Clarendon Hills v. Century Indemnity Co.
20 N.E.2d 607 (Appellate Court of Illinois, 1939)

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Bluebook (online)
9 N.E.2d 358, 291 Ill. App. 30, 1937 Ill. App. LEXIS 455, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reiter-v-illinois-national-casualty-co-illappct-1937.