Stinnes Corp. v. Kerr-McGee Coal Corp.

722 N.E.2d 1167, 309 Ill. App. 3d 707, 243 Ill. Dec. 98, 1999 Ill. App. LEXIS 876
CourtAppellate Court of Illinois
DecidedDecember 14, 1999
Docket5-98-0105
StatusPublished
Cited by18 cases

This text of 722 N.E.2d 1167 (Stinnes Corp. v. Kerr-McGee Coal Corp.) 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
Stinnes Corp. v. Kerr-McGee Coal Corp., 722 N.E.2d 1167, 309 Ill. App. 3d 707, 243 Ill. Dec. 98, 1999 Ill. App. LEXIS 876 (Ill. Ct. App. 1999).

Opinion

PRESIDING JUSTICE GOLDENHERSH

delivered the opinion of the court:

Stinnes Corporation, third-party plaintiff (Stinnes), appeals from an order of the circuit court of Williamson County dismissing its action for spoliation of evidence against Kerr-McGee Coal Corporation, third-party defendant (Kerr-McGee). The underlying products liability action was brought by Robert W. Wilkas and James Benge against Stinnes’ subsidiary, SRE Carlsbad, Inc. (SRE Carlsbad), for personal injuries arising out of a coal-mining vehicle accident that occurred at a mine owned by Wilkas’ and Benge’s employer, Kerr-McGee. Wilkas and Benge take no part in this appeal. SRE Carlsbad dissolved on December 29, 1989, prior to the Wilkas and Benge accident. Stinnes was substituted as the real party in interest. Accordingly, SRE Carlsbad also takes no part in this appeal. The issue raised herein is whether the trial court improperly dismissed Stinnes’ complaint with prejudice pursuant to Kerr-McGee’s motion attacking Stinnes’ complaint. Stinnes contends, and we agree, that it has properly stated a claim against Kerr-McGee for spoliation of evidence based upon traditional negligence principles. We reverse and remand.

BACKGROUND

On September 9, 1991, Robert Wilkas and James Benge originally filed a products liability action in Washington County against defendants A.L. Lee Corporation (A.L. Lee), SRE Carlsbad, Inc. (successor to MEMCO, Inc.), and Dana Corporation, doing business as Spicer Heavy Axle Division, for injuries received in a July 18, 1990, work accident at Kerr-McGee’s Galatia mine when the mantrip (an underground mine vehicle) in which they were riding overturned. Wilkas and Benge were both employees of Kerr-McGee at the time of the accident. The workers’ complaint alleged that A.L. Lee and SRE Carlsbad designed, manufactured, and sold the mantrip in which they were riding at the time of the accident. The actual manufacturer of the mantrip was MEMCO, Inc., the predecessor to SRE Carlsbad. MEMCO, Inc., changed its name to SRE Carlsbad after selling its assets, including its name, to A.L. Lee in 1985.

On October 15, 1991, those defendants filed a petition for removal to the United States District Court for the Southern District of Illinois. After removal to the district court, SRE Carlsbad filed its third-party complaint against Kerr-McGee, seeking contribution based upon Kerr-McGee’s alleged negligence in its supervision, care, and maintenance of the mantrip involved in the July 18, 1990, accident. On May 6, 1992, SRE Carlsbad examined the mantrip and discovered that damaged parts were missing. On July 14, 1993, SRE Carlsbad filed a motion with the district court for leave to amend its third-party complaint against Kerr-McGee to add a claim for spoliation of evidence for Kerr-McGee’s alleged failure to preserve parts from the mantrip involved in the Wilkas and Benge work accident. On August 4, 1993, the district court denied SRE Carlsbad’s motion for leave to amend and later denied a motion to reconsider.

On October 8, 1993, Wilkas and Benge settled with all defendants. The district court found Wilkas’ and Benge’s settlement with Kerr-McGee to be in good faith, and it dismissed SRE Carlsbad’s contribution claims with prejudice. SRE Carlsbad, Inc., v. Kerr-McGee Coal Corp., No. 91—CV—4232—JPG (S.D. Ill. October 8, 1993). On October 13, 1993, SRE Carlsbad filed a notice of appeal to the Seventh Circuit Court of Appeals, challenging the district court’s denial of the motion for leave to amend the third-party complaint to add a claim for negligent spoliation of evidence. While awaiting a determination, our supreme court decided the case of Boyd v. Travelers Insurance Co., 166 Ill. 2d 188, 652 N.E.2d 267 (1995). In that case, our supreme court refused to recognize a new cause of action for negligent spoliation of evidence, finding instead that a claim for negligent spoliation could be made under existing negligence law. Accordingly, the Seventh Circuit Court of Appeals reversed the district court and remanded with directions to reconsider in light of Boyd. SRE Carlsbad, Inc. v. Kerr-McGee Coal Corp., No. 93—3498 (7th Cir. May 25, 1995) (unpublished order).

After remand, SRE Carlsbad sought to add another party, its parent corporation, Stinnes, as a real party in interest because of an indemnification agreement that required Stinnes to cover claims against SRE Carlsbad. Stinnes alleged that its payments to Wilkas and Benge were made on behalf of both itself and SRE Carlsbad. The district court concluded that Stinnes was a real party in interest, and the court also found that SRE Carlsbad lacked capacity to maintain a negligent spoliation claim against Kerr-McGee because SRE Carlsbad was voluntarily dissolved as a corporation on December 29, 1989, prior to the work accident upon which the underlying litigation was based.

On June 11, .1996, Stinnes filed a motion for leave to file its fifth amended complaint for cross-claim against Kerr-McGee, alleging negligent spoliation of evidence. On June 12, 1996, the district court granted leave to Stinnes to file its fifth amended complaint. At the same time, the district court declined to exercise additional diversity jurisdiction over the case because diversity did not exist between Stinnes and Kerr-McGee, both Delaware corporations. Accordingly, the case was remanded to the circuit court of Williamson County.

On August 30, 1996, Kerr-McGee filed a special and limited appearance, contending that it had never been served with summons by Stinnes and, therefore, the trial court had no personal jurisdiction over Kerr-McGee. The trial court denied Kerr-McGee’s motion and ordered it to file a pleading. On December 12, 1996, in lieu of its answer, Kerr-McGee filed a motion attacking Stinnes’ fifth amended complaint on numerous grounds. The motion failed to state under which rule it was brought and was not supported by affidavit, deposition, testimony, or any other such evidentiary material. On December 27, 1996, Stinnes filed its response. On November 25, 1997, the trial court ruled on Kerr-McGee’s motion by way of letter, which stated, [Kerr-McGee’s] Motion to Dismiss should be granted because Defendant did not owe a duty to [Stinnes] to preserve evidence.” On November 26, 1997, Stinnes sent a letter to the trial court, asking it to reconsider its ruling. On January 28, 1998, the trial court entered an order dismissing Stinnes’ complaint with prejudice. Stinnes now appeals.

ANALYSIS

The issue we are asked to address is whether the trial court improperly dismissed Stinnes’ complaint with prejudice pursuant to Kerr-McGee’s motion attacking Stinnes’ complaint. Stinnes contends it made a proper claim upon which relief may be granted and argues that the trial court erred in dismissing its complaint. Kerr-McGee responds with numerous arguments as to why the trial court’s dismissal should be affirmed. Both parties’ contentions are fully addressed in the following analysis.

I. STANDARD OF REVIEW

Kerr-McGee failed to identify whether its motion to dismiss was filed under section 2 — 615 or section 2 — 619 of the Code of Civil Procedure (Code) (735 ILCS 5/2 — 615, 2 — 619 (West 1996)).

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Cite This Page — Counsel Stack

Bluebook (online)
722 N.E.2d 1167, 309 Ill. App. 3d 707, 243 Ill. Dec. 98, 1999 Ill. App. LEXIS 876, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stinnes-corp-v-kerr-mcgee-coal-corp-illappct-1999.