Wilder Chiropractic, Inc. v. State Farm Fire and Casualty Co.

2014 IL App (2d) 130781
CourtAppellate Court of Illinois
DecidedAugust 9, 2014
Docket2-13-0781
StatusPublished
Cited by14 cases

This text of 2014 IL App (2d) 130781 (Wilder Chiropractic, Inc. v. State Farm Fire and 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
Wilder Chiropractic, Inc. v. State Farm Fire and Casualty Co., 2014 IL App (2d) 130781 (Ill. Ct. App. 2014).

Opinion

Illinois Official Reports Appellate Court

Wilder Chiropractic, Inc. v. State Farm Fire & Casualty Co., 2014 IL App (2d) 130781

Appellate Court WILDER CHIROPRACTIC, INC., Plaintiff-Appellant, v. STATE Caption FARM FIRE AND CASUALTY COMPANY, Defendant-Appellee (Easy PC Solutions, Defendant).

District & No. Second District Docket No. 2-13-0781

Filed June 19, 2014

Held In an action arising from an underlying suit for damages arising from (Note: This syllabus defendant’s unsolicited fax transmissions to the class represented by constitutes no part of the plaintiff in violation of the Telephone Consumer Protection Act, the opinion of the court but dismissal, on forum non conveniens grounds and pursuant to section has been prepared by the 2-619(a)(3) of the Code of Civil Procedure, of defendant’s insurer Reporter of Decisions from plaintiff’s action seeking a declaratory judgment that the for the convenience of insurance policy defendant insurer issued to its insured covered the the reader.) claims that were made and settled in plaintiff’s underlying action was an abuse of discretion with respect to forum non conveniens because no reasonable person could conclude that the relevant factors weighed against plaintiff’s forum choice, and as to section 2-619(a)(3), the pending action in Wisconsin brought by defendant insurer between the same parties for the same cause had been dismissed and section 2-619(a)(3) no longer provided a basis for dismissal; however, Supreme Court Rule 103(b), which provides for dismissal based on a lack of diligence in serving process on defendant, did provide an adequate basis to sustain the dismissal based on the unreasonable four-month delay in serving defendant insurer, and since the parties agreed that the statute of limitations had not expired when defendant insurer was served, the dismissal would be without prejudice.

Decision Under Appeal from the Circuit Court of Lake County, No. 12-MR-623; the Review Hon. Jorge L. Ortiz, Judge, presiding. Judgment Affirmed as modified.

Counsel on Brian J. Wanca, David M. Oppenheim, and Jeffrey A. Berman, all of Appeal Anderson & Wanca, of Rolling Meadows, and Phillip A. Bock and Robert M. Hatch, both of Bock & Hatch, LLC, of Chicago, for appellant.

Michael C. Borders and Rosa M. Tumialan, both of Dykema Gossett PLLC, of Chicago, for appellee.

Panel JUSTICE BIRKETT delivered the judgment of the court, with opinion. Justices Hutchinson and Spence concurred in the judgment and opinion.

OPINION

¶1 Plaintiff, Wilder Chiropractic, Inc., appeals the dismissal of defendant State Farm Fire and Casualty Company (State Farm) from plaintiff’s declaratory judgment action on an insurance policy issued by State Farm. The trial court dismissed the action against State Farm on two bases: (1) the common-law doctrine of forum non conveniens; and (2) section 2-619(a)(3) of the Code of Civil Procedure (Code) (735 ILCS 5/2-619(a)(3) (West 2012)), which authorizes dismissal of an action where “there is another action pending between the same parties for the same cause” (735 ILCS 5/2-619(a)(3) (West 2012)). For the following reasons, we hold that forum non conveniens was not a proper basis for dismissal and that events subsequent to the dismissal have mooted the section 2-619(a)(3) issue. We affirm the dismissal on an alternative ground proposed by State Farm, namely, that plaintiff did not exercise reasonable diligence, as required by Illinois Supreme Court Rule 103(b) (eff. July 1, 2007), in serving State Farm in this action. Accordingly, we affirm the dismissal, but clarify that it is without prejudice to plaintiff refiling the action against State Farm.

¶2 I. BACKGROUND ¶3 The current suit is an insurance coverage action. The underlying suit was a class action filed on September 27, 2011, in Waukesha County, Wisconsin. The named defendant was Easy PC Solutions (Easy PC), a Wisconsin limited liability company with its principal place of business in Waukesha County. Plaintiff, whose principal place of business is in Dane County, Wisconsin, was the named representative of a class whose members allegedly received unsolicited facsimile transmissions from Easy PC. Plaintiff’s complaint did not identify the locations of the class members other than itself. Plaintiff alleged both

-2- common-law conversion and violation of the federal Telephone Consumer Protection Act (the TCPA) (47 U.S.C. § 227 (2006)). ¶4 Easy PC tendered defense of the action to State Farm. Easy PC claimed coverage under a State Farm business policy (the Policy) issued to “WRT Specialties, Inc.” (WRT) in Waukesha County. The address listed for WRT in the Policy was the same address listed for Easy PC in the class action complaint. (The relationship between WRT and Easy PC is unclear from the record.) The Policy was purchased by WRT through Brandi Wein, a State Farm agent in Pewaukee, Wisconsin. ¶5 In December 2011, State Farm sent David Reise and Darryl Wessel, both of WRT, a letter rejecting the tender of defense. The letter was signed by “Steve Davis, Team Member,” who referenced WRT’s prior discussions with Deanna Clarey, a State Farm claims representative. Davis explained in the letter that there was no coverage under the Policy, because the deliberate sending of faxes fell within a coverage exclusion for intentional acts. ¶6 On April 12, 2012, plaintiff, on behalf of the putative class, entered into a settlement agreement (the Agreement) with Easy PC. Plaintiff and Easy PC stipulated to certification of a class that “include[d] approximately 5,500 doctors[’] and chiropractors[’] offices in Wisconsin and Illinois to which [Easy PC] caused to be sent 17,319 [fax] advertisements without prior express permission or invitation.” The Agreement recited that the 17,319 unsolicited faxes were sent on September 28, October 7, and October 16, 2010. The Agreement noted that the total potential liability under the TCPA for the 17,319 faxes would be $24,750,000, at $1,500 per fax. The actual settlement amount, however, was $8,874,178.77. ¶7 Pursuant to the Agreement, Easy PC agreed to assign its rights under the Policy to the putative class. Furthermore, plaintiff agreed to seek recovery of the settlement amount only from proceeds of the Policy, and only as against State Farm. ¶8 There are allusions in the briefs and the record to a May 2012 order of the Wisconsin trial court preliminarily approving the Agreement. There is, however, no such order in the record. ¶9 On July 10, 2012, the Wisconsin trial court entered judgment on the Agreement and certified a class described only as follows: “[A]ll persons to whom [Easy PC] sent advertising facsimiles between September 15, 2010[,] and October 30, 2010.” The judgment did not indicate that the certified class was composed differently than as described in the Agreement, i.e., with members in Wisconsin and Illinois alone. ¶ 10 In the proceedings below in this declaratory judgment action, plaintiff represented to the trial court that the class has 7,076 members, of which 4,196, or approximately 60%, are in Illinois. State Farm neither questioned those figures below nor does so in this appeal. ¶ 11 The present action was initiated when, on April 20, 2012, plaintiff brought against State Farm and Easy PC a complaint for a declaratory judgment that the Policy covered the claims that were settled by the Agreement. (Easy PC is not a party to this appeal.) The record contains an alias summons served on State Farm at its Bloomington, Illinois, office on August 16, 2012. The parties agree that State Farm was not served prior to August 16, 2012. State Farm’s principal place of business is in Bloomington.

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Wilder Chiropractic, Inc. v. State Farm Fire and Casualty Company
2014 IL App (2d) 130781 (Appellate Court of Illinois, 2014)

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Bluebook (online)
2014 IL App (2d) 130781, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wilder-chiropractic-inc-v-state-farm-fire-and-casu-illappct-2014.