Wells v. State Farm Fire & Casualty Co.

2020 IL App (1st) 190631-U
CourtAppellate Court of Illinois
DecidedMarch 17, 2020
Docket1-19-0631
StatusUnpublished

This text of 2020 IL App (1st) 190631-U (Wells v. State Farm Fire & 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
Wells v. State Farm Fire & Casualty Co., 2020 IL App (1st) 190631-U (Ill. Ct. App. 2020).

Opinion

2020 IL App (1st) 190631-U

No. 1-19-0631

Order filed March 17, 2020.

Second Division

NOTICE: This order was filed under Supreme Court Rule 23 and may not be cited as precedent by any party except in the limited circumstances allowed under Rule 23(e)(1). _____________________________________________________________________________

IN THE

APPELLATE COURT OF ILLINOIS

FIRST DISTRICT ______________________________________________________________________________

GIA WELLS, ) Appeal from the ) Circuit Court of Plaintiff-Appellant and Cross-Appellee, ) Cook County. ) v. ) No. 2017 L 11978 ) STATE FARM FIRE AND CASUALTY CO., ) The Honorable ) James E. Snyder, Defendant-Appellee and Cross-Appellant. ) Judge Presiding. ______________________________________________________________________________

JUSTICE LAVIN delivered the judgment of the court. Justices Pucinski and Coghlan concurred in the judgment.

ORDER

¶1 Held: The circuit court properly dismissed the insured’s claim that her insurer acted vexatiously and unreasonably in denying coverage where a bona fide dispute as to coverage existed. Additionally, the court’s inaccurate but superfluous reference to altering a prior order nunc pro tunc was without effect.

¶2 In May 2016, plaintiff Gia Wells submitted a claim to her insurer, defendant State Farm

Fire and Casualty Co. (State Farm), after discovering water in the basement and the second-floor

bathroom of her property. Ultimately, State Farm denied coverage and Gia filed a second- No. 1-19-0631

amended, two-count complaint alleging that State Farm (1) breached the insurance contract and

(2) acted vexatiously and unreasonably in denying her claim, in violation of the Illinois

Insurance Code (the Code) (215 ILCS 5/155 (West 2016)). The circuit court granted State

Farm’s motion to dismiss Gia’s contention under the Code and permitted her to voluntarily

dismiss the remaining count.

¶3 On appeal, Gia asserts the court erroneously dismissed her claim that State Farm acted

vexatiously and unreasonably in denying coverage. State Farm contends on cross-appeal that the

court entered an improper nunc pro tunc order vacating its prior finding that Gia willfully failed

to appear for her deposition. We affirm the court’s judgment.

¶4 I. Background

¶5 A. The Policy

¶6 Charles Wottrich, Gia’s first husband, procured the policy at issue for the house located

at 3740 Merioneth Drive in the Village of Crete (property). Coverage A applied to the dwelling

while Coverage B applied to personal property. In addition, coverage B covered loss caused by

the following:

“14. Freezing of a plumbing, heating, air conditioning or automatic fire

protective sprinkler system, or of a household appliance.

This peril does not include loss on the residence premises while the

dwelling is vacant, unoccupied or being constructed, unless you have used

reasonable care to:

a. maintain heat in the building; or

b. shut off the water supply and drain the system and appliances

of water.”

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Both Coverage A and Coverage B incorporated the exclusions provided in “Section 1-Losses

Not Insured,” which similarly stated as follows:

“1. We do not insure for any loss to the property described in Coverage A which

consists of, or is directly and immediately caused by, one or more of the perils listed in

items a. through n. below ***:

***

b. freezing of a plumbing, heating, air conditioning or automatic fire

protective sprinkler system, or of a household appliance, or by discharge, leakage

or overflow from within the system or appliance caused by freezing. This

exclusion only applies while the dwelling is vacant, unoccupied or being

constructed. This exclusion does not apply if you have used reasonable care to:

(1) maintain heat in the building; or

(2) shut off the water supply and drain the system and appliances

We note that the policy also contained exclusions for corrosion and vandalism to the dwelling

while vacant.

¶7 Finally, the policy contained the following condition:

“Concealment or Fraud. This policy is void as to you and any other insured, if you

or any other insured under this policy has intentionally concealed or misrepresented any

material fact or circumstance relating to this insurance, whether before or after a loss.”

¶8 B. The Insurance Claim

¶9 After Gia reported the flooding to State Farm in May 2016, it hired EFI Global, Inc.,

(EFI) to assist in the investigation. EFI’s initial report, published in January 2017, noted that the

-3- No. 1-19-0631

waterline on the basement walls was 73 inches high and it was unclear how often the two-story

residence was occupied. The report found that the gas used at the property was inadequate to

appropriately heat it and that water froze inside the pipes, causing a pipe failure in the second-

floor bathroom. Ultimately, water flowed from there into the basement.

¶ 10 In April 2017, EFI published a report addendum at the direction of State Farm based on

the receipt of additional information. Specifically, “the utility-supplied water service to the

residence had been discontinued sometime prior to 2017.” The addendum determined that

“utility-supplied water could not have been the source of the flooding,” that the volume of water

that could have escaped from the second-floor was insufficient to cause the basement flooding

and that it was improbable that the ground water would have caused that extent of flooding.

Additionally, EFI concluded that fractures to the piping in the basement caused the basement to

flood but that the cause of the fractures could not be determined, in part because of corrosion on

the pipes. EFI’s addendum did not identify potential causes for the fractures. EFI stated, “[i]t is

highly probable that the flooding of the basement resulted in the loss of heating to the residence,

which in turn resulted in the freezing in the upstairs piping.” After State Farm asked EFI to

discuss the candidate causes of the initial piping facture in the basement, EFI published a second

addendum in May 2017. EFI identified the potential causes as freezing, corrosion and vandalism.

¶ 11 Meanwhile, on April 19, 2017, Gia submitted to examination under oath. Gia testified

that when Charles died in 2006, she continued to use the property as her address but slept at her

mother’s home. From 2006 to 2012, she went to the property every day. She reduced visits to

once or twice a week in 2012. According to Gia, she married Mark Wells on December 9, 2015,

and lived full time at his home in Steger, Illinois, but never officially moved in with him. She

-4- No. 1-19-0631

kept less of her personal belongings at Mark’s house than at her mother’s house and kept most of

her belongings at the property.

¶ 12 Gia testified that during the first week of January 2016, she and Mark went on their

honeymoon to Mexico for 7 to 10 days. The December before the honeymoon, she had stopped

by the property to pick up clothing and change the furnace filter. Additionally, the heat was left

on an automatic setting. She did not recall going to the property again until May 2016.

¶ 13 At that time, Gia went to the property to clean and prepare for remodeling. In order to

transfer from well water to city water, the property was re-piped before Charles died in 2006. As

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Cite This Page — Counsel Stack

Bluebook (online)
2020 IL App (1st) 190631-U, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-v-state-farm-fire-casualty-co-illappct-2020.