St. Paul Mercury Insurance v. Aargus Security Systems, Inc.

2013 IL App (1st) 120784
CourtAppellate Court of Illinois
DecidedFebruary 5, 2014
Docket1-12-0784
StatusPublished
Cited by9 cases

This text of 2013 IL App (1st) 120784 (St. Paul Mercury Insurance v. Aargus Security Systems, 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
St. Paul Mercury Insurance v. Aargus Security Systems, Inc., 2013 IL App (1st) 120784 (Ill. Ct. App. 2014).

Opinion

Illinois Official Reports

Appellate Court

St. Paul Mercury Insurance v. Aargus Security Systems, Inc., 2013 IL App (1st) 120784

Appellate Court ST. PAUL MERCURY INSURANCE, a/s/o Mallers Building Caption Limited Partnership, J. RICHMAN, and SPECTRUM PROPERTIES, INC., Plaintiffs-Appellants and Cross-Appellees, v. AARGUS SECURITY SYSTEMS, INC., Defendant-Appellee and Cross- Appellant (Peoples Gas Light and Coke Company, and Peoples Energy Corporation, Defendants).

District & No. First District, Second Division Docket No. 1-12-0784

Filed December 10, 2013

Held In an action arising from the explosion of a propane tank in a (Note: This syllabus commercial building housing tenants engaged in the jewelry business, constitutes no part of the the trial court properly entered summary judgment for the company opinion of the court but that provided security for the building’s owner, notwithstanding the has been prepared by the allegations of plaintiff insurer, as subrogee of the building owner, that Reporter of Decisions the security company was negligent in allowing delivery of the for the convenience of propane tank and breached its contract by failing to report the the reader.) delivery, since there was no showing that the security company, under the terms of its contract or through its voluntary undertaking, had any duty to stop or report the delivery of the propane tank.

Decision Under Appeal from the Circuit Court of Cook County, No. 09-L-6303; the Review Hon. Eileen M. Brewer, Judge, presiding.

Judgment Affirmed. Counsel on Cassiday Schade LLP, of Chicago (Julie A. Teuscher, Bradford D. Appeal Roth, and Cliff Demosthene, of counsel), for appellants.

Leahy, Eisenberg & Fraenkel, Ltd., of Chicago (Edward J. Leahy and Roland S. Keske, of counsel), for appellee.

Panel JUSTICE HARRIS delivered the judgment of the court, with opinion. Presiding Justice Quinn and Justice Simon concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, St. Paul Mercury Insurance, as subrogee of Mallers Building Limited Partnership, and J. Richman and Spectrum Properties, Inc. (Mallers), brought a complaint against defendant Aargus Security Systems, Inc. (Aargus), alleging that Aargus, as security provider for the “Mallers Building,” owned by subragors, negligently allowed the delivery of a propane tank that subsequently caused an explosion in the building. The complaint contained one count alleging negligence and one count alleging breach of contract. The circuit court granted Aargus’s motion for summary judgment and struck two affidavits Mallers attached to its response to Aargus’s summary judgment motion. The circuit court denied Mallers’s subsequent motion to reconsider. At issue is: (1) whether a question of fact existed as to whether Aargus had a contractual duty to stop or report the delivery of propane tanks to the building; (2) whether the circuit court improperly struck two of the affidavits Mallers presented in opposition to Aargus’s motion for summary judgement; and (3) whether the circuit court erred in denying Mallers’s motion for reconsideration. ¶2 We hold that the circuit court properly granted summary judgment in Aargus’s favor because Mallers failed to show, either by the terms of the contract or through evidence of a voluntary undertaking, that Aargus had a duty to stop or report the delivery of propane tanks to the building; that the circuit court properly struck both affidavits as they failed to comply with Illinois Supreme Court Rule 191 (Ill. S. Ct. R. 191 (eff. Jan. 4, 2013); and that the circuit court properly denied Mallers’ motion for reconsideration.

¶3 JURISDICTION ¶4 On November 1, 2011, the circuit court granted Aargus’s motion for summary judgment. On February 22, 2012, the circuit court denied Mallers’s motion for reconsideration. On March 23, 2012, Mallers timely filed its notice of appeal. Accordingly, this court has jurisdiction

-2- pursuant to Illinois Supreme Court Rules 301 and 303 governing appeals from final judgments entered below. Ill. S. Ct. R. 301 (eff. Feb. 1, 1994); R. 303 (eff. May 30, 2008).

¶5 BACKGROUND ¶6 On May 29, 2009, Mallers filed its complaint against Aargus alleging that its subrogor owned the Mallers Building located at 5 South Wabash in Chicago, Illinois. The building “had various tenants including tenants engaged in the jewelry business.” According to the complaint, on April 1, 2002, JR Welding delivered a tank of liquefied petroleum to Maria Pecak, doing business as Betty’s Jewelry, in suite 617 of the building. A tenant in a space adjacent to Pecak’s, Alfredo Mohedano, accepted the delivery on Pecak’s behalf. Pecak later brought the tank to her suite. Plaintiff alleged that “[a] few hours later, *** an explosion occurred on the 6th floor of the *** building resulting in extensive property damage, property loss, building damage, and personal injury.” Mallers further alleged “[i]t was later determined that the explosion was the result of the ignition of the liquefied petroleum” tank and that “[t]he tank was damaged and/or defective prior to the time of delivery.” Mallers alleged that $14,500,000, had been paid for various insurance claims from the resulting damage. ¶7 Aargus, Mallers alleged, “served as the security services contractor for the Mallers Building and its tenants.” According to the complaint, there was a time when the use of liquefied petroleum gas was permitted on the premises, specifically: “At all times prior to April 1, 2002, when Peoples Gas was performing work on the natural gas lines in the Mallers Building and shut off the natural gas service to the tenants of the Mallers Building, and permitted the use of liquefied petroleum gas on the premises, Aargus served as the security provider.” Mallers alleged that Aargus “continuously permitted several different distributors of liquefied petroleum and/or propane gas tanks to make deliveries” to various tenants of the building and that Aargus “was authorized to search and investigate all deliveries *** and stop the delivery of prohibited or illegal materials and/or substances.” Mallers alleged that one of the distributors “known” to Aargus delivered the tank that exploded on April 1, 2002. ¶8 Mallers alleged that Aargus “knew or should have known” that a dangerous condition was created by allowing deliveries, and tenants to accept deliveries, of liquefied petroleum and/or propane gas.

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2013 IL App (1st) 120784, Counsel Stack Legal Research, https://law.counselstack.com/opinion/st-paul-mercury-insurance-v-aargus-security-system-illappct-2014.