Travelers Insurance v. Robert R. Anderson Co.

445 N.E.2d 1189, 112 Ill. App. 3d 812, 68 Ill. Dec. 336, 1983 Ill. App. LEXIS 1505
CourtAppellate Court of Illinois
DecidedJanuary 18, 1983
Docket81-2345
StatusPublished
Cited by7 cases

This text of 445 N.E.2d 1189 (Travelers Insurance v. Robert R. Anderson 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
Travelers Insurance v. Robert R. Anderson Co., 445 N.E.2d 1189, 112 Ill. App. 3d 812, 68 Ill. Dec. 336, 1983 Ill. App. LEXIS 1505 (Ill. Ct. App. 1983).

Opinion

PRESIDING JUSTICE STAMOS

delivered the opinion of the court:

Robert R. Anderson Company (Anderson) and Cook County appeal from a judgment requiring them to indemnify the Travelers Insurance Company (Travelers) for payments made to Edward Burns in satisfaction of a judgment entered on a jury verdict finding Howell Tractor and Equipment Company (Howell), Travelers’ insured, liable in negligence for certain personal injuries sustained by Burns. Anderson and Cook County contend that post-judgment interest was improperly included in the indemnification award, that a new trial should be granted, and that the trial court erred in denying Cook County’s motion for a judgment n.o.v.

This is the second time that this case has been before this court. The facts most pertinent to the first appeal are set forth in detail in our prior opinion (see Burns v. Howell Tractor & Equipment Co. (1977), 45 Ill. App. 3d 838, 360 N.E.2d 377), and need be summarized only briefly here. Burns, the plaintiff in the original action, was injured while operating a machine called a vibratory roller which was leased from Howell for use on a Cook County road resurfacing project. The project was jointly supervised by Cook County and Anderson, a contractor hired by Cook County and Burns’ employer. Burns was using the roller to compact asphalt chunks taken from the old surface of the road so that the compacted asphalt could be used as a subbase for the new surface. The decision to use the asphalt chunks as a subbase had been made by Anderson and acquiesced in by Cook County. When the roller was driven over the large chunks of asphalt, it began to tilt and bounce. Gravel was spread over the chunks at a foreman’s direction. After this was done, the machine began to operate properly in areas where the gravel was thickly spread. Burns was injured when the roller went over an area where the gravel thinly covered the asphalt. The roller began to bounce and tip over, and Burns unsuccessfully attempted to put the roller in reverse. He leapt from the machine and the roller toppled over, pinning him to the ground.

Burns brought suit against Howell and Cook County to recover for his injuries. Howell filed a third-party complaint against Anderson. Howell and Cook County also filed cross-complaints against each other. The jury returned a general verdict in favor of Burns for $300,000 against Howell and Cook County, and a general verdict in favor of Howell in its actions against Cook County and Anderson. The jury also answered a special interrogatory finding that Howell was actively negligent prior to and at the time of the accident, and that that negligence proximately caused Burns’ injuries. The trial court entered judgment on the general verdict in favor of Burns, and granted a motion for a new trial to determine the liabilities of Howell, Cook County, and Anderson.

On appeal, Howell contended that judgment should have been entered on the general verdict in its favor against Cook County and Anderson; Cook County contended that it should have been granted a judgment n.o.v. in its favor; and Anderson contended that the answer to the special interrogatory should have controlled the general verdict in favor of Howell, and that judgment should have been entered in its favor accordingly.

We held that the answer to the special interrogatory was against the manifest weight of the evidence, that Cook County was not entitled to a judgment n.o.v., and that the trial court did not abuse its discretion in ordering a new trial on the cross-claims and third-party action rather than entering a judgment on the general verdict or the special finding.

After petitions for rehearing in this court and for leave to appeal to our supreme court were denied, Travelers paid the principal judgment of $300,000 to Burns. Travelers also paid Burns post-judgment interest in the amount of $62,975.34.

The parties proceeded to a second trial on their liabilities inter se, with Travelers entering the cause as the subrogee of Howell. During the pendency of the second trial, the trial court entered an order reciting that, as a matter of law, the post-judgment interest which was paid to Burns would not be included in any award of indemnity to Travelers. The second trial ended in a hung jury, and a new trial was ordered.

In the third trial, the jury returned a general verdict finding that Travelers was entitled to reimbursement from Cook County and Anderson. The trial court granted Travelers’ post-trial motion to fix the amount of the judgment at $362,975.34, the exact amount paid out to Burns. Anderson and Cook County appeal. Anderson contends that post-judgment interest is not recoverable in an action for indemnity and that another new trial should be granted. Cook County adopts the issues as raised and argued by Anderson, and also contends that it should have been granted a judgment n.o.v. in the indemnity action because its conduct cannot be considered to be active negligence when compared with the conduct of Howell.

Anderson and Cook County’s primary contention on appeal is that, as a matter of law, Travelers is not entitled to recover the post-judgment interest which accrued during the pendency of the first appeal of this case. No Illinois case has squarely faced the issue of whether post-judgment interest is recoverable by a tortfeasor/indemnitee. The Illinois rule is, however, that the indemnitee is entitled to recover the full amount of the judgment paid out to the plaintiff. (See Kooyenga v. Hertz Equipment Rentals, Inc. (1979), 79 Ill. App. 3d 1051, 1058, 399 N.E.2d 216.) The plaintiff’s right to post-judgment interest arises by operation of statute rather than through any agreement between the parties. (Noe v. City of Chicago (1974), 56 Ill. 2d 346, 349, 307 N.E.2d 376.) That statutory interest is “made a part of the judgment.” (Ill. Rev. Stat. 1981, eh. 17, par. 6403, superseded by Ill. Rev. Stat. 1981, ch. 110, par. 2 — 1303.) An implied indemnitee is not entitled to recover attorney fees and costs of the underlying suit under Illinois law (see Kerns v. Engelke (1979), 76 Ill. 2d 154, 166-67, 390 N.E.2d 859) because such items are expenses which are incidental to the defense of the earlier litigation rather than part of the judgment itself. In view of the rule that the indemnitee is entitled to recover the full amount of the judgment, we hold that the post-judgment interest pqid to Burns is properly recoverable by Howell. This holding is in accord with the weight of authority from other jurisdictions. See Prickett v. Hawkeye-Security Insurance Co. (10th Cir. 1960), 282 F.2d 294, 300; Singer v. Dorr (E.D. La. 1967), 272 F. Supp. 931, 937; Holley v. The Manfred Stansfield (E.D. Va. 1960), 186 F. Supp. 805, 811; Missouri, Kansas & Texas Ry. Co. v. Pacific Ry. Co. (1918), 103 Kan. 1, 17, 175 P. 97, 104; see also 42 C.J.S. Indemnity sec. 24, at 602 (1944); 41 Am. Jur. 2d Indemnity sec. 36, at 725-26 (1968); but see Otis Elevator Co. v. Maryland Casualty Co. (1934), 95 Colo. 99,110, 33 P.2d 974, 978.

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Bluebook (online)
445 N.E.2d 1189, 112 Ill. App. 3d 812, 68 Ill. Dec. 336, 1983 Ill. App. LEXIS 1505, Counsel Stack Legal Research, https://law.counselstack.com/opinion/travelers-insurance-v-robert-r-anderson-co-illappct-1983.