Supreme Carpentry & Drywall, LLC v. Contegra Construction, LLC

2024 IL App (5th) 230689-U
CourtAppellate Court of Illinois
DecidedSeptember 26, 2024
Docket5-23-0689
StatusUnpublished

This text of 2024 IL App (5th) 230689-U (Supreme Carpentry & Drywall, LLC v. Contegra Construction, LLC) 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
Supreme Carpentry & Drywall, LLC v. Contegra Construction, LLC, 2024 IL App (5th) 230689-U (Ill. Ct. App. 2024).

Opinion

NOTICE 2024 IL App (5th) 230689-U NOTICE Decision filed 09/26/24. The This order was filed under text of this decision may be NO. 5-23-0689 Supreme Court Rule 23 and is changed or corrected prior to not precedent except in the the filing of a Petition for IN THE limited circumstances allowed Rehearing or the disposition of under Rule 23(e)(1). the same. APPELLATE COURT OF ILLINOIS

FIFTH DISTRICT ______________________________________________________________________________

SUPREME CARPENTRY AND ) Appeal from the DRYWALL, LLC, ) Circuit Court of ) Madison County. Plaintiff-Appellee, ) ) v. ) ) CONTEGRA CONSTRUCTION CO., ) ) No. 18-L-330 Defendant and Counterplaintiff-Appellee, ) ) and ) ) TRAVELERS PROPERTY CASUALTY ) INSURANCE COMPANY OF AMERICA, ) Honorable ) Sarah D. Smith, Defendant and Counterdefendant-Appellant. ) Judge, presiding. ______________________________________________________________________________

JUSTICE MOORE delivered the judgment of the court. Justices Cates and Sholar concurred in the judgment.

ORDER

¶1 Held: The circuit court erred in granting summary judgment in favor of Contegra and denying Travelers’ motion for summary judgment. The insurance policy controlled the claims process for the loss. We reverse the circuit court’s order of August 16, 2023, and enter judgment in favor of Travelers, and remand for further proceedings on the remaining claims.

¶2 The defendant and counterdefendant, Travelers Property Casualty Insurance Company of

America (Travelers), appeals the August 16, 2023, judgment of the circuit court of Madison

County in favor of the defendant and counterplaintiff, Contegra Construction Co. (Contegra), on

1 a complaint for a breach of contract, and against Travelers on its cross-motion for summary

judgment. Travelers raises several issues on appeal, including: (1) whether the circuit court erred

in determining that Travelers, Contegra, and Supreme Carpentry and Drywall, LLC (Supreme)

entered into a time and materials contract that was separate from the insurance policy and that was

later breached by Travelers; (2) whether the circuit court erred in determining that the appraisal

award did not affect the time and materials contract; and (3) whether the circuit court erred in

determining that Contegra’s action was not time barred. For the following reasons, we reverse the

circuit court’s order of August 16, 2023, and enter judgment in favor of Travelers.

¶3 I. BACKGROUND

¶4 Contegra is a construction company located in Edwardsville, Madison County, Illinois. In

early 2015, Contegra was the general contractor on a senior living development (the Project) in

Acworth, Georgia. The Project’s concierge building used modular construction. The 44 living units

were built in a factory, complete with interior finishing elements, and then shipped to Georgia for

installation as part of the Project.

¶5 On March 25, 2015, Travelers issued a commercial insurance policy for builders’ risk

coverage (the Policy) to Contegra for the job site located in Acworth, Georgia, for the period of

March 25, 2015, through February 25, 2016. The Policy listed the named insured as Contegra. A

certified copy of the Policy is included in the record before us. The Policy was a custom insurance

policy prepared for Contegra that is made up of several coverage forms, endorsements, and

schedules. Relevant to this appeal, the Policy contained, inter alia, the following provisions which

are identified by the title given by Travelers to the form, endorsement, or schedule.

¶6 The “COMMON POLICY CONDITIONS” portion of the Policy contained, inter alia, the

following:

2 “B. Changes

This policy contains all the agreements between you and us concerning the

insurance afforded. The first Named Insured shown in the Declarations is

authorized to make changes in the terms of this policy with our consent. This

policy’s terms can be amended or waived only be endorsement issued by us as part

of this policy.” (Bold in original.)

¶7 The portion of the Policy titled “COMMERCIAL INLAND MARINE CONDITIONS”

contained the following:

“The following conditions apply in addition to the Common Policy Conditions and

applicable Additional Conditions in Commercial Inland Marine Coverage Forms:

LOSS CONDITIONS

***

B. Appraisal

If we and you disagree on the value of the property or the amount of loss, either

may make written demand for an appraisal of the loss. In this event, each party will

select a competent and impartial appraiser. The two appraisers will select an

umpire. If they cannot agree, either may request that selection be made by a judge

of a court having jurisdiction. The appraisers will state separately the value of the

property and amount of loss. If they fail to agree, they will submit their differences

to the umpire. A decision agreed to by any two will be binding. Each party will:

1. Pay its chosen appraiser; and

2. Bear the other expenses of the appraisal and umpire equally.

If there is an appraisal, we will still retain our right to deny this claim.

3 ***

GENERAL CONDITIONS

F. Valuation

The value of the property will be the least of the following amounts:

1. The actual cash value of the property;

2. The cost of reasonably restoring that property to its conditions immediately

before loss or damage; or

3. The cost of replacing that property with substantially identical property.

In the event of loss or damage, the value of property will be determined as of the

time of loss or damage.”

¶8 The portion of the Policy titled “CONSTRUCTION PAK — BUILDERS’ RISK

COVERAGE FORM” provides, in relevant part, as follows:

“E. ADDITIONAL CONDITIONS

The following conditions apply in addition to the COMMERCIAL INLAND MARIN

CONDITIONS and the COMMON POLICY CONDITIONS.

15. Valuation

The Valuation GENERAL CONDITION in the COMMERCIAL INLAND MARINE

CONDITIONS is replaced with the following:

Valuation

In the event of loss or damage, the value of Covered Property at the time of loss or damage

will be determined as follows:

4 a. At replacement cost as of the time of loss or damage, except as otherwise provided in

this Valuation GENERAL CONDITION. Replacement cost is the cost to replace

Covered Property at the time of loss or damage without deduction for depreciation.

(1) You may make a claim for loss or damage covered by this insurance on an actual

cash value basis instead of on a replacement cost basis. In the event you elect to

have loss or damage settled on an actual cash value basis, you may still make a

claim on a replacement cost basis if you notify us of your intent to do so within 180

days after the loss or damage.

(2) We will not pay on a replacement cost basis for any loss or damage:

(a) Until the lost or damaged property is actually repaired or replaced; and

(b) Unless the repairs or replacement are made as soon as reasonably possible

after the loss or damage.

c. We will not pay more for loss or damage on a replacement cost basis than the lease of

the following subject to Paragraph d. below

(1) The Limit of Insurance applicable to the lost or damaged property;

(2) The cost to replace, at the same job site, the lost or damaged property with other

property;

(a) Of comparable material and quality; and

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Bluebook (online)
2024 IL App (5th) 230689-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/supreme-carpentry-drywall-llc-v-contegra-construction-llc-illappct-2024.