Wheeler v. Aetna Casualty & Surety Co.

311 N.E.2d 134, 57 Ill. 2d 184, 1974 Ill. LEXIS 382
CourtIllinois Supreme Court
DecidedMarch 29, 1974
Docket46008
StatusPublished
Cited by43 cases

This text of 311 N.E.2d 134 (Wheeler v. Aetna Casualty & Surety Co.) is published on Counsel Stack Legal Research, covering Illinois Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wheeler v. Aetna Casualty & Surety Co., 311 N.E.2d 134, 57 Ill. 2d 184, 1974 Ill. LEXIS 382 (Ill. 1974).

Opinion

MR. JUSTICE KLUCZYNSKI

delivered the opinion of the court:

Plaintiffs, E. Todd Wheeler and the Perkins and Will Partnership, filed an action for a declaratory judgment in the circuit court of Cook County against Aetna Casualty and Surety Company (hereafter Aetna). The circuit court granted plaintiffs’ motion for summary judgment but the appellate court reversed and remanded with directions to enter a declaratory judgment in favor of Aetna. (Wheeler v. Aetna Casualty and Surety Co., 11 Ill. App. 3d 841.) We granted leave to appeal.

The Perkins and Will Partnership is an architectural firm and E. Todd Wheeler is a partner therein. Perkins and Will had contracted with Silver Cross Hospital to provide its services in the alteration and construction of an addition to the hospital building. John Wagner, an iron-worker, was injured on the project and filed suit in January 1970 against plaintiffs herein and others. Liability was predicated upon alleged violation of the Structural Work Act. (Ill. Rev. Stat. 1969, ch. 48, par. 60 et seq.) Wagner’s complaint alleged:

“2. That on September 29, 1969, the defendants, SILVER CROSS HOSPITAL, E. TODD WHEELER AND THE PERKINS AND WILL PARTNERSHIP, and S. N. NIELSEN & COMPANY, A Corporation, and each of them, were entities simultaneously and concurrently in charge of the erection and construction of the aforesaid building or other structure located on the premises of the Silver Cross Hospital, located at 500 Walnut, in said city, county and state.
3. That on September 29, 1969, and prior thereto, the plaintiff, and other construction workers, were required to work upon certain scaffolding which was then and there being used in the erection and construction of the said building or other structure.
4. That on the above date, and prior thereto, the aforementioned scaffold was erected, controlled and placed in a manner which was not safe, suitable and proper for the protection of working men working on or about the same.
5. On the above date, the plaintiff, in the course of his employment, was upon the aforementioned scaffold and fell therefrom when a plank broke or gave way by virtue of the faulty erection, operation and placing of said scaffold.”

Prior to Wagner’s alleged injury the Perkins and Will Partnership purchased a public-liability policy from Aetna, which provided:

“The Company will pay on behalf of the Insured all sums which the insured shall become obligated to pay as damages because of bodily injury or property damage to which this insurance applies, caused by an occurrence, and the Company shall have the right and duty to defend any suit against the insured seeking damages on account of such bodily injury or property damage, even if any of the allegations of the suit are groundless, false or fraudulent ***.”

The policy also contained an exclusion clause.

“Exclusion (Engineers, Architects or Surveyors Professional Liability)
It is agreed that the insurance does not apply to bodily injury or property damage arising out of any professional services performed by or for the named insured, including (1) the preparation or approval of maps, plans, opinions, reports, surveys, designs or specifications and (2) supervisory, inspection or engineering services.”

It had also secured an “Architects and/or Engineers Liability Policy” from another insurer, Continental Casualty Co. (hereafter Continental). That policy, in pertinent part, stated:

“The company will pay on behalf of the insured all sums which the insured shall become legally obligated to pay as damages if legal liability arises out of the performance of professional services for others in the insured’s capacity as an architect or an engineer and if such legal liability is caused by an error, omission or negligent act.”

Perkins and Will tendered the defense of the Wagner suit to Aetna, which refused to assume the defense because it maintained that the allegations in the Wagner complaint did not encompass a situation within the purview of its public-liability policy and were expressly excluded. Continental thereafter retained counsel to defend plaintiffs in the Wagner action. Plaintiffs then commenced the declaratory judgment action against Aetna seeking to require that Aetna pay any judgment against plaintiffs or any reasonable settlement on their behalf in the Wagner suit; that any express or additional damages accrued in the defense of plaintiffs be reimbursed; and that $1000 in legal fees be assessed against Aetna for its vexatious refusal to defend. The circuit court order granting summary judgment for plaintiffs provided that “Aetna is required to defend the complaint and pay any judgment based thereon.”

The appellate court reversed and remanded. In doing so, it recognized that in Illinois, the duty of an insurance company to defend its insured in an action for injuries must be judged by the allegations of the complaint. (Sims v. Illinois National Casualty Co., 43 Ill. App. 2d 184, 191.) The appellate court, however, expanded this principle by taking judicial notice of facts dehors the complaint, i.e., the role played by architects in the construction of buildings. The appellate court reasoned that an architect’s function is limited to the rendition of professional services and not the placing and operation of hoists or scaffolds upon which Wagner allegedly was injured. Therefore it concluded that the allegations of the complaint fit squarely within Aetna’s policy exclusion for professional liability, thereby relieving Aetna of a duty to defend and placing that duty upon Continental. 11 Ill. App. 3d at 854.

We need not reach the issue as to whether a court is limited to facts alleged in the complaint in determining the possible insurance coverage of parties to litigation. During the course of oral argument of this cause, it was suggested by counsel that the Wagner lawsuit had been settled. After this appeal had been submitted for decision and opinion, we directed the clerk of the circuit court of Cook County to compile a record of the Wagner action, and it was filed as a supplemental record in this cause.

The supplemental record, in pertinent part, discloses that in April 1973 the present plaintiffs filed a motion for summary judgment based upon their counterclaim against S. N. Nielsen & Company (hereafter Nielsen). Plaintiffs premised their motion upon a contract entered into between Nielsen, as contractor, and Silver Cross Hospital. A provision of that agreement required the contractor “to protect, defend, indemnify and save harmless the owner and architect *** against all loss damage or expense which the owner and architect may sustain, incur or become liable for on account of work performed by the contractor ***.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Seitz-Partridge v. Loyola University of Chicago
2013 IL App (1st) 113409 (Appellate Court of Illinois, 2013)
Condon v. American Telephone & Telegraph Co.
554 N.E.2d 206 (Illinois Supreme Court, 1990)
United States Fidelity & Guaranty Co. v. Continental Casualty Co.
505 N.E.2d 1072 (Appellate Court of Illinois, 1987)
Bobber Auto Truck Plaza v. Department of Revenue
493 N.E.2d 404 (Appellate Court of Illinois, 1986)
Hamer v. Board of Education
488 N.E.2d 1096 (Appellate Court of Illinois, 1986)
Fid. & Cas. Co. v. ENVIRODYNE ENG., INC.
461 N.E.2d 471 (Appellate Court of Illinois, 1983)
Fidelity & Casualty Co. of New York v. Envirodyne Engineers, Inc.
461 N.E.2d 471 (Appellate Court of Illinois, 1983)
Rural Electric Convenience Cooperative Co. v. Illinois Commerce Commission
454 N.E.2d 1200 (Appellate Court of Illinois, 1983)
Walters v. Midland-Ross Corp.
452 N.E.2d 90 (Appellate Court of Illinois, 1983)
Hill-Vincent v. City of Chicago
418 N.E.2d 142 (Appellate Court of Illinois, 1981)
Allabastro v. Wheaton National Bank
414 N.E.2d 537 (Appellate Court of Illinois, 1980)
West Side Organization Health Services Corp. v. Thompson
404 N.E.2d 208 (Illinois Supreme Court, 1980)
People v. Butler
382 N.E.2d 436 (Appellate Court of Illinois, 1978)
Rasky v. Anderson
379 N.E.2d 1 (Appellate Court of Illinois, 1978)
Vulcan Materials Co. v. County of Will
378 N.E.2d 389 (Appellate Court of Illinois, 1978)
People v. Phillips
379 N.E.2d 97 (Appellate Court of Illinois, 1978)
Hilti, Inc. v. Griffith
386 N.E.2d 63 (Appellate Court of Illinois, 1978)
S & F CORP. v. Bilandic
378 N.E.2d 1137 (Appellate Court of Illinois, 1978)

Cite This Page — Counsel Stack

Bluebook (online)
311 N.E.2d 134, 57 Ill. 2d 184, 1974 Ill. LEXIS 382, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheeler-v-aetna-casualty-surety-co-ill-1974.