2022 IL App (5th) 210168-U NOTICE NOTICE Decision filed 04/05/22. The This order was filed under text of this decision may be NO. 5-21-0168 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 ______________________________________________________________________________
WEST BEND MUTUAL INSURANCE COMPANY, ) Appeal from the ) Circuit Court of Plaintiff-Appellant, ) Jefferson County. ) v. ) No. 20-CH-23 ) VAUGHAN’S FETCH, INC.; HARLAN PORTEE; and ) JOHN LANE CAMBRON, ) ) Defendants ) Honorable ) Evan L. Owens, (John Lane Cambron, Defendant-Appellee). ) Judge, presiding. ______________________________________________________________________________
JUSTICE CATES delivered the judgment of the court. Justices Welch and Moore concurred in the judgment.
ORDER
¶1 Held: The trial court erred in granting summary judgment in favor of the injured driver and against the insurer where the limit of liability provision in the commercial auto insurance policy was not ambiguous when read in conjunction with the policy’s declarations. As a result, the judgment is reversed, and the cause is remanded with directions to enter a summary judgment in favor of the insurer.
¶2 The plaintiff, West Bend Mutual Insurance Company (West Bend), appeals from a
summary judgment entered in favor of the defendant-appellee, John Lane Cambron, declaring that
a commercial auto liability policy issued by West Bend did not clearly and unambiguously prohibit
the stacking of bodily injury liability limits. On appeal, West Bend claims that the trial court erred
in granting Cambron’s motion for summary judgment and denying its motion for summary
judgment where the limit of liability provision in its policy unambiguously prohibited the stacking 1 of liability coverage. We reverse and remand with directions to enter a summary judgment in favor
of West Bend.
¶3 I. BACKGROUND
¶4 On October 2, 2018, a Dodge Ram pickup truck owned by Vaughan’s Fetch, Inc., and
driven by Harlan Portee, struck the rear of a vehicle driven by John Lane Cambron. The rear-end
impact propelled Cambron’s vehicle into the vehicle ahead of it, and then across the center line of
the roadway, where it collided with a tractor-trailer, owned by BF&C Trucking, and operated by
Michael Flanagan. Cambron, Flanagan, and two other persons, Lesa Suits and Lorena Suits, were
injured in the accident. BF&C Trucking and the Illinois Department of Transportation (IDOT)
sustained property damage.
¶5 On the day of the accident, the Dodge Ram pickup was insured under a commercial auto
insurance policy issued by West Bend. The commercial auto policy covered a fleet of vehicles and
trailers owned by Vaughan’s Fetch.
¶6 On March 19, 2020, West Bend filed an action in interpleader, seeking to deposit the limits
of its policy into the registry of the circuit court of Jefferson County, for the benefit of all those
claiming bodily injury or property damage as a result of the October 2, 2018, accident. West Bend
identified Cambron, Harlan Portee, Vaughan’s Fetch, Flanagan, BF&C Trucking, Lesa Suits,
Lorena Suits, and IDOT as interested parties and named them as defendants in the action. In an
amended complaint for interpleader, West Bend alleged that under the combined single limit
(CSL) policy issued to Vaughan’s Fetch, the limit of liability for all bodily injury and property
damages resulting from any one accident was $1 million, regardless of the number of claims made
or vehicles involved. West Bend further alleged that it was unable to determine the proper
distribution of its $1 million in coverage among the various claimants. West Bend requested an
2 order permitting it to deposit the sum of $1 million into the registry of the court for the benefit of
all claimants. West Bend also sought a full release of liability for Vaughan’s Fetch and Harlan
Portee, and an order discharging it from any and all claims of the defendants.
¶7 Cambron filed an answer to the interpleader action and a counterclaim. In the answer,
Cambron denied that the liability coverage in the West Bend policy was limited to $1 million per
accident. In the counterclaim, Cambron sought a judgment declaring that the West Bend policy
failed to unambiguously limit the liability coverage to $1 million per accident. Cambron alleged
that the policy’s limit of liability provision did not identify the coverage limit, but rather referred
the reader to the declarations pages. He further alleged that the $1 million limit of liability was
listed multiple times in the declarations pages, and thereby created an ambiguity, permitting the
stacking of the liability limits.
¶8 While the actions for interpleader and declaratory judgment were pending, West Bend
settled claims made by Lesa Suits, Lorena Suits, Michael Flanagan, BF&C Trucking, and IDOT.
Pursuant to West Bend’s motion, those parties were dismissed with prejudice from the interpleader
action.
¶9 West Bend and Cambron also entered into a partial settlement of the case, based on a high-
low agreement, but they continued to litigate the stacking issue. Under the partial settlement
agreement, the amount of Cambron’s settlement was dependent upon a final determination of the
stacking issue. Specifically, if, after the exhaustion of all appeals, it was determined that West
Bend failed to clearly limit its liability to $1 million for each accident, then Cambron would receive
the higher amount set out in the settlement agreement. If, after the exhaustion of all appeals, it was
determined that West Bend’s liability coverage was limited to $1 million per accident, then
Cambron would receive the lower amount set out in the settlement agreement.
3 ¶ 10 Subsequently, Cambron and West Bend filed cross-motions for summary judgment on the
stacking issue. The parties agreed that there were no disputed issues regarding any material fact,
and that the only issue was whether the West Bend policy clearly and unambiguously limited
liability coverage for bodily injury and property damage to $1 million per accident.
¶ 11 The West Bend commercial auto insurance at issue here covered a fleet of 34 vehicles and
trailers owned by the policyholder, Vaughan’s Fetch. Section I of the “Motor Carrier Coverage
Form” informed the policyholder that the schedule of coverages and covered autos could be found
in “Item Two” of the declarations. Section II of the “Motor Carrier Coverage Form” addressed the
liability coverage for covered autos and provided, in pertinent part:
“Section II – Covered Autos Liability Coverage
A. Coverage
We will pay all sums an ‘insured’ legally must pay as damages because of ‘bodily
injury’ or ‘property damage’ to which this insurance applies, caused by an ‘accident’
and resulting from the ownership, maintenance[,] or use of a covered ‘auto’.
***
C. Limit of Insurance
Regardless of the number of covered ‘autos’, ‘insureds’, premiums paid, claims made[,]
or vehicles involved in the ‘accident’, the most we will pay for the total of all damages
and ‘covered pollution cost or expense’ combined resulting from any one ‘accident’ is
the Limit of Insurance for Covered Autos Liability Coverage shown in the
Declarations.
* * *.”
4 ¶ 12 The first page of the declarations section of the policy is entitled “Motor Carrier Coverage
Declarations.” Under “ITEM TWO: Schedule of Coverages and Covered Autos” on this page,
there is a table with four columns containing the following headings: “Coverages,” “Covered
Autos,” “Limit,” and “Premium.” The “Coverages” column lists the types of coverage provided in
the policy, e.g., covered autos liability, medical payments, uninsured motorist, underinsured
motorist, comprehensive, and collision. The “Covered Autos Liability” row, depicted below,
includes cells containing a numeric symbol related to covered autos, the coverage limit, and the
premium for that coverage.
Coverages Covered Autos Limit (the most Premium we will pay for any one “Accident” or “Loss”) Covered Autos 61 $1,000,000 Each [redacted] Liability Accident The numeric symbol “61” is one of several “Covered Autos Designation Symbols” identified and
described in the “Motor Carrier Coverage Form” of the policy. Symbol 61 is a shorthand reference
for “any auto” in the Vaughan’s Fetch fleet, including autos acquired after the commencement of
the policy period. The table shows that the limit of liability for “Covered Autos” is $1 million for
each accident.
¶ 13 The next section of the policy contains the heading, “ITEM THREE: Schedule of Covered
Autos You Own.” This schedule contains tables identifying each covered vehicle along with a
corresponding schedule of coverages. The first table provides a description of each individual
covered vehicle, the original cost of that vehicle, and the total premium for that vehicle. The second
table contains the classification and garaging location for each covered vehicle. The remaining
tables identify the types of coverage for each individual covered vehicle, the premium for each
5 coverage, and the limit of liability. For example, the “Covered Autos Liability” coverage for the
Dodge Ram pickup involved in the accident appeared as follows:
Veh. Covered Autos Liability No. CSL Premium 8 $1,000,000 [redacted]
¶ 14 In his motion for summary judgment, Cambron argued that he was entitled to summary
judgment because the West Bend policy did not unambiguously provide that the limit of bodily
injury liability coverage was $1 million per accident. Cambron pointed out that the “Limit of
Insurance” provision in the policy did not identify the coverage limits, but rather referred the reader
to the policy’s declarations section to discover the limit. Cambron claimed that West Bend’s policy
was ambiguous because there were seven copies of the “Motor Carrier Coverage Declarations”
pages found in the policy, each showing that there was a $1 million limit of liability, and because
the $1 million limit of liability was listed next to each specific vehicle in the “Schedule of Covered
Autos You Own.” He asserted that in cases where an insurer has directed the reader to the
declarations page to discover the limit of liability, and the declarations page lists the limit of
liability multiple times, Illinois courts have found that the insurer failed to unambiguously limit its
liability, permitting the stacking of coverage limits.
¶ 15 In its motion for summary judgment, West Bend argued that the “Limit of Insurance”
clause in the policy clearly and unequivocally provided that regardless of the number of covered
autos, claims made, or vehicles involved, the most it would pay for the total of all damages
resulting from any one accident was “the ‘Limit of Insurance for Covered Autos Liability
Coverage’ shown in the Declarations.” West Bend further argued that the declarations plainly
provided that the “Covered Autos Liability” coverage for any owned vehicle or trailer was limited
6 to $1 million for each accident, and the fact that the policy insured a fleet of 34 vehicles and trailers
did not impact the liability limit.
¶ 16 After considering the motions, the supplemental briefings, and the arguments of the parties,
the trial court entered an order denying West Bend’s motion for summary judgment and granting
Cambron’s motion for summary judgment. The court declared that the West Bend policy did not
clearly and unambiguously limit liability coverage to $1 million for each accident. The court also
determined that the parties’ “high-low” settlement agreement provided an appropriate remedy, and
it made no specific finding as to the total amount of liability coverage available under the policy.
West Bend appealed.
¶ 17 II. ANALYSIS
¶ 18 On appeal, West Bend contends that the trial court erred in granting Cambron’s motion for
summary judgment and denying its cross-motion for summary judgment. West Bend claims that
the court erroneously found that the West Bend commercial auto policy did not clearly prohibit
the stacking of bodily injury liability coverage.
¶ 19 Summary judgment is properly granted only where the pleadings, depositions, and
admissions on file, together with any affidavits, show that there is no genuine issue as to any
material fact and that the moving party is entitled to a judgment as a matter of law. 735 ILCS 5/2-
1005(c) (West 2020). The trial court’s order granting summary judgment is reviewed de novo.
Hess v. Estate of Klamm, 2020 IL 124649, ¶ 14. In addition, the construction of an insurance policy
presents a question of law that is reviewed de novo. Hess, 2020 IL 124649, ¶ 14.
¶ 20 An insurance policy is a contract, and the general rules governing the construction of other
types of contracts also govern the construction of insurance policies. Hobbs v. Hartford Insurance
Co. of the Midwest, 214 Ill. 2d 11, 17 (2005). In construing an insurance policy, the court’s primary
7 objective is to ascertain and give effect to the intention of the parties as expressed in the language
of the policy. Hobbs, 214 Ill. 2d at 17. An insurance policy is to be construed as a whole, and the
provisions in the policy should be read together, rather than in isolation. Central Illinois Light Co.
v. Home Insurance Co., 213 Ill. 2d 141, 153 (2004). If the policy language is clear and
unambiguous, the language will be applied as written unless it contravenes public policy. Hobbs,
214 Ill. 2d at 17. If, however, the policy language is susceptible to more than one reasonable
interpretation, it is ambiguous and will be strictly construed against the insurer who drafted the
policy. Central Illinois Light, 213 Ill. 2d at 153. The touchstone is whether the policy provision is
subject to more than one reasonable interpretation, not whether creative possibilities can be
suggested. Bruder v. Country Mutual Insurance Co., 156 Ill. 2d 179, 193 (1993). Thus, the court
should consider only reasonable interpretations, and it should not strain to find an ambiguity where
none exists. Hobbs, 214 Ill. 2d at 17.
¶ 21 In general, antistacking provisions in insurance policies are not contrary to public policy.
Grzeszczak v. Illinois Farmers Insurance Co., 168 Ill. 2d 216, 229-30 (1995). If an antistacking
provision is unambiguous, it will be given effect by a reviewing court. Hobbs, 214 Ill. 2d at 18;
Grzeszczak, 168 Ill. 2d at 230.
¶ 22 In this case, West Bend contends that the Limit of Insurance provision clearly and
unambiguously prohibits the stacking of liability coverage, and the fact that the policy covers 34
vehicles and trailers does not impact the limit of liability coverage for each accident. Cambron
does not claim that the language in the Limit of Insurance provision is ambiguous. Rather, he
contends that ambiguity arises because there were seven copies of the “Motor Carrier Coverage
Declarations” found in the policy, each showing that there was a $1 million limit of liability, and
because the $1 million limit of liability coverage was printed next to each covered vehicle listed
8 in the “ITEM THREE: Schedule of Covered Autos You Own.” Both parties rely on Hess v. Estate
of Klamm, 2020 IL 124649, in support of their respective arguments.
¶ 23 In Hess, the Illinois Supreme Court considered whether an antistacking provision in a
multi-vehicle automobile policy, when read together with the declarations, was ambiguous,
allowing for stacking of liability coverage. The antistacking clause provided, in part:
“LIMIT OF LIABILITY
A. The limit of liability shown in the Declarations for each person for Bodily
Injury Liability is our maximum limit of liability for all damages, including
damages for care, loss of services or death, arising out of ‘bodily injury’ sustained
by any one person in any one auto accident. Subject to this limit for each person,
the limit of liability shown in the Declarations for each accident for Bodily Injury
Liability is our maximum limit of liability for all damages for ‘bodily injury’
resulting from any one auto accident.”
The Limit of Liability clause further provided that the limit of liability shown in the declarations
was the most the insurer would pay regardless of the number of insureds, claims made, vehicles
or premiums shown in the declarations, or vehicles involved in the auto accident. Hess, 2020 IL
124649, ¶ 23.
¶ 24 The declarations did not list liability limits separately for each covered vehicle. Instead, the
liability limits were listed on the first page of the declarations one time for Autos 1, 2, and 3, and
the liability limits were restated on the second page for Auto 4. Hess, 2020 IL 124649, ¶ 25. In
considering whether the listing of the liability limits twice in the declarations resulted in an
ambiguity, the supreme court reiterated its prior holding that there is no per se rule that “ ‘an
insurance policy will be deemed ambiguous as to the limits of liability anytime the limits are noted
9 more than once on the declarations.’ ” Hess, 2020 IL 124649, ¶ 22 (quoting Hobbs, 214 Ill. 2d at
26 n.1). The court further directed that the issue of ambiguity should be decided on a case-by-case
basis, and that the declarations page should be construed together with the other provisions in the
policy, and not read in isolation. Hess, 2020 IL 124649, ¶ 22; Hobbs, 214 Ill. 2d at 26 n.1. Applying
those principles, the supreme court found there was a reasonable explanation for restating the limits
of liability on the second page of the declarations, namely that there was not enough space to
include an additional column listing the coverages and premiums for Auto 4 on the first page.
Hess, 2020 IL 124649, ¶ 25. The court determined that the antistacking clause, when read together
with the declarations, prohibited the stacking of bodily injury liability coverage. Hess, 2020 IL
124649, ¶ 25.
¶ 25 In this case, the “Limit of Insurance” provision in the West Bend policy clearly stated that
regardless of the number of covered autos, insureds, premiums paid, claims made, or vehicles
involved in the accident, “the most we will pay for the total of all damages *** resulting from any
one ‘accident’ is the Limit of Insurance for Covered Autos Liability Coverage shown in the
Declarations.” The limit for “Covered Autos Liability” shown in the declarations was “$1,000,000
each accident.” We are not persuaded by Cambron’s claim that an ambiguity with respect to
stacking was created because there were seven copies of the “Motor Carrier Coverage
Declarations” found in the policy. West Bend explained that each time the subject policy was
modified because of a new endorsement or limitation, the Motor Carrier Coverage Declarations
and the Motor Carrier Coverage Schedule were included. The copies of the Motor Carrier
Coverage Declarations are identical and contain the same limit of liability for Covered Autos. We
do not find that the duplication of the declarations pages under these circumstances created an
10 ambiguity with respect to the stacking of coverage. Profitt v. OneBeacon Insurance, 363 Ill. App.
3d 959, 963 (2006).
¶ 26 Cambron’s argument that the policy is ambiguous because the $1 million limit of liability
coverage was printed next to each covered vehicle listed in the “Schedule of Covered Autos You
Own” is likewise unpersuasive. The “Schedule of Covered Autos You Own” does nothing more
than indicate the amount of liability coverage provided for each owned vehicle and the premium
allotted for that coverage. To the extent that this schedule could create some confusion about
whether the liability coverage could be stacked, the “Limit of Insurance” provision, read together
with the “Limit” of “Covered Autos Liability Coverage” shown in the Motor Carrier Coverage
Declarations, provides clarity. The “Limit of Insurance” provision refers the policyholder to the
“Limit of Insurance for Covered Autos Liability Coverage” shown in the declarations, rather than
the “Schedule of Covered Autos You Own,” and the “Limit” expressly provides that “the most we
will pay for any one accident or loss” is “$1,000,000 each accident.”
¶ 27 Our supreme court has noted that though the declarations page of an insurance policy
contains important information for the policyholder, it is just “one piece of the insuring agreement”
and “cannot address every single coverage issue.” Hobbs, 214 Ill. 2d at 23. The supreme court
further noted that uncertainty could arise if the declarations page was read in isolation from the
rest of the policy provisions, reiterating that the policy must be construed by examining the
document as a whole. Hess, 2020 IL 124649, ¶ 22; Hobbs, 214 Ill. 2d at 23. In this case, the West
Bend policy contains a clear “Limit of Insurance” provision. When that provision is construed
together with the other provisions in the policy, including the “Limit” for “Covered Autos
Liability” in the declarations pages, we find no ambiguity regarding the limits of liability coverage
that would allow for stacking of that coverage.
11 ¶ 28 III. CONCLUSION
¶ 29 As noted, in construing an insurance policy, a court will not strain to find an ambiguity
where none exists. In construing the West Bend commercial auto insurance policy as a whole and
reading the antistacking provision together with the declarations and other provisions in the policy,
we find that there is no ambiguity as to the amount of liability coverage for bodily injury and
property damage. The liability coverage is limited to $1 million per accident. Accordingly, the trial
court’s entry of summary judgment in favor of Cambron is reversed, and the cause is remanded
with instructions to enter a summary judgment in favor of West Bend.
¶ 30 Reversed and remanded with directions.