Allen v. State Farm Mut. Auto. Ins. Co., 1-89-3087

• Citation: 574 N.E.2d 55,158 Ill.Dec. 261,214 Ill.App.3d 729
• Decision Date: 15 May 1991
• Docket Number: No. 1-89-3087,1-89-3087
• Parties: , 158 Ill.Dec. 261 Fannie ALLEN, as Administrator of the Estate of James Allen, Deceased, Plaintiff-Appellant and Cross-Appellee, v. STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant, Counter-plaintiff, and Counter-defendant-Appellee and Cross-Appellant (James Lee Allen, Defendant, Counter-defendant, and Counter-plaintiff).
• Court: United States Appellate Court of Illinois

Page 55

574 N.E.2d 55 214 Ill.App.3d 729, 158 Ill.Dec. 261 Fannie ALLEN, as Administrator of the Estate of James Allen,
Deceased, Plaintiff-Appellant and Cross-Appellee,
v.
STATE FARM MUTUAL AUTOMOBILE INSURANCE COMPANY, Defendant,
Counter-plaintiff, and Counter-defendant-Appellee
and Cross-Appellant (James Lee Allen,
Defendant, Counter-defendant,
and Counter-plaintiff). No. 1-89-3087. Appellate Court of Illinois,
First District, Third Division. May 15, 1991.

[214 Ill.App.3d 730] Topper and Weiss Ltd., Chicago (Barry Weiss, of counsel), for plaintiff-appellant and cross-appellee.

Taylor, Miller, Sprowl, Hoffnagle and Merletti, Chicago (Frank C. Stevens, James J. Hoffnagle, of counsel), for defendant, counter-plaintiff, and counter-defendant-appellee and cross-appellant.

Page 56

[158 Ill.Dec. 262] Justice WHITE delivered the opinion of the court:

This appeal is from declaratory judgment for defendant State Farm Mutual Automobile Insurance Company (State Farm) in an action on a policy. The underlying dispute concerns an Arkansas collision, in which an insured Indiana passenger is alleged to have been fatally injured in his own car while his adult Illinois son was driving. We affirm.

I. FACTS

On April 18, 1987, James Allen (the father) resided in Gary, Indiana, and James Lee Allen (the son) resided in Chicago. On that date, the father drove in his own car to the son's home in order to pick up the son for an intended trip to Mississippi.

[214 Ill.App.3d 731] The son took the wheel, and later on that same date the car collided with another vehicle in Arkansas while the son was driving in an allegedly negligent manner. The collision injured the father, who is alleged to have died as a result in a Tennessee hospital on May 16, 1987. The son still resides in Illinois.

At the time of the accident, the father owned a vehicle insurance policy (the policy) insuring the car involved and providing liability and uninsured motor vehicle coverage. The son did not own a motor vehicle and was not covered under any other vehicle insurance policy.

II. PROCEDURAL HISTORY

The father's widow, Fannie Allen (plaintiff), was named administrator of his estate by an Indiana court. Plaintiff as administrator then filed suit against the son in the circuit court of Cook County. That suit is not directly part of this appeal.

On June 10, 1988, plaintiff as administratrix filed suit for declaratory judgment against defendant State Farm in the circuit court of Cook County. That suit is the subject of this appeal. It was based in relevant part on the policy.

The complaint alleged that the policy excluded liability coverage for bodily injury to an insured and that the father's medical expenses amounted to more than $82,000. The complaint sought a declaration that, by reason of the liability exclusion and the father's injuries and death, State Farm owed plaintiff the $50,000 limit of uninsured motor vehicle coverage that the policy provided. (State Farm had paid plaintiff the $25,000 limit of medical-payments coverage under the policy.)

On August 11, 1988, the circuit court granted plaintiff leave to amend her complaint by naming the son as an additional defendant. The son is not a party to this appeal.

By leave of court, State Farm filed a counterclaim against the son on March 29, 1989, seeking a declaration that under the policy the son had no liability coverage for the father's injuries and that State Farm had no duty to defend or indemnify the son on account of the accident.

On August 18, 1989, State Farm filed a motion for summary judgment in its favor on the counterclaim and the amended complaint. Also on that date, by leave of court, plaintiff filed her second amended complaint, adding a claim that, because of an Arkansas compulsory-insurance statute, State Farm owed liability coverage as a result of out-of-State coverage provisions in the policy. Later, plaintiff filed her cross-motion for summary judgment on her out-of-State coverage claim.

[214 Ill.App.3d 732] Eventually, after answering State Farm's counterclaim, the son filed his own counterclaim against State Farm, seeking a declaration that State Farm owed him liability coverage and a defense, was guilty of an improper claims practice, and owed him attorney fees and costs. Later, by leave of court, State Farm answered the son's counterclaim and amended its summary judgment motion to stand also as a motion for summary judgment on that counterclaim.

Relying on Indiana law, the circuit court granted State Farm's summary judgment motion and denied plaintiff's cross-motion. The judgment declared that the policy provided no liability or uninsured-motorist coverage for any injuries or death sustained by the father as a result of the collision.

Page 57

[158 Ill.Dec. 263] Plaintiff now appeals from entry of summary judgment for State Farm and denial of summary judgment for her.

III. POLICY PROVISIONS

The policy effectively defined both the father and the son as "insured," and it defined "bodily injury" to include death.

Section I of the policy, pertaining to liability coverage ("Coverage A"), obliged State Farm to pay "damages which an insured becomes legally liable to pay because of * * * bodily injury to others." (Emphasis omitted.) However, in subparagraph 2(c) under the heading "When Coverage A Does Not Apply," section I also stated that there was no liability coverage for bodily injury to "ANY INSURED OR ANY MEMBER OF AN INSURED'S FAMILY RESIDING IN THE INSURED'S HOUSEHOLD." (italics and boldface omitted.)

Regarding out-of-State coverage, section I also stated that, if an insured under the liability coverage were in another State and, as a nonresident, became subject to that State's motor vehicle compulsory insurance law, the policy would be interpreted to give the coverage required by the law, and "the coverage so given replaces any coverage in this policy to the extent required by the law for the insured's operation, maintenance or use of a car insured under this policy." (Emphasis...