BHI CORP. v. Litgen Concrete Cutting and Coring Co., 1-02-2296.
| Court | United States Appellate Court of Illinois |
| Citation | 346 Ill. App.3d 300,804 N.E.2d 707,281 Ill.Dec. 742 |
| Docket Number | No. 1-02-2296.,1-02-2296. |
| Parties | BHI CORPORATION; Sazama-Brauer Gallery, Ltd.; The Rowe Company Fine Arts, Inc.; Klein Gallery, Inc.; Wesley-Jessen, Division of Schering-Plough Corporation; Zolla-Lieberman Gallery, a Partnership; Peter Miller, d/b/a Peter Miller Gallery; Ivy Associates, Inc., d/b/a Objects Gallery; Van Straaten Gallery, Inc.; Stephen Wirtz, d/b/a Stephen Wirtz Gallery; Gwenda Jay Gallery, Inc.; Habitat Galleries, Inc.; East-West Contemporary Art, a Partnership; GTD Corporation, d/b/a Greendoor Tavern; John Welzenbach, Inc., d/b/a Welzenbach Production; Thomas H. Boland, d/b/a Thomas H. Boland & Paul and Robbie Klein; Harold M. and Victoria Rowe; William Lieberman; Jack and Sandra Guthman; Robert S. Lubin; Naomi Donnelley; Bryan S. Reid; Mayer, Brown & Platt, A Partnership; Richard And Roberta Lieberman; Bruce And Ann Bachman; J. Ira Harris; Daniel Cotter; David B. Heller; Ben W. Heineman; Gwenda J. Klein; Fawbush Gallery, Inc.; Walter And Ann Nathan; Stephen And Mireille Morency-Lay; Lorence-Monk, Inc.; Scheele Gallery; Helen Getler; Grayson Gallery, Inc.; Carl Ripoli; John Pappajohn, d/b/a Equity Dynamics, Inc.; James Graham & Sons, Inc., d/b/a Graham Gallery; Tynedale Investments, Ltd.; International Contemporary Prints, Ltd.; Robert Winslow; Joardis B. Davis; Debra Van Tuinin; Charles Stewart, II; Andre Ferrella; Greg Gummersal; Pat Hammerman; Susan Hostetler; Carol Haliday Mcqueen; Laura Nicholson; Joe Price; Eve Sonnerman; Michelle Stuart; Mary Teichman; David Umholtz; Marjorie Allegretti; Fredric Goodman; Mary Lou Zelazny; Michael Dubina; Aetna Casualty & Surety Company a/s/o Jupiter Industries, Inc.; National Ben Franklin Insurance Company a/s/o Brady Mechanical Services; Aetna Casualty & Surety Company a/s/o Alfred Cahen and Mary Cahen; Royal Insurance Company a/s/o Lillian Zevin; Maryland Casualty Insurance Company a/s/o 368 Condominium Association; Centennial Insurance Company a/s/o Brett Mitchell Gallery; Centennial Insurance Company a/s/o Diane Villani Editions; Centennial Insurance Company a/s/o John Szoke Graphics, Inc.; and Aetna Casualty Company a/s/o Powell Kleinschmidt, Plaintiffs-Appellants, v. LITGEN CONCRETE CUTTING AND CORING COMPANY, Defendant-Appellee. |
| Decision Date | 10 February 2004 |
804 N.E.2d 707
346 Ill. App.3d 300
281 Ill.Dec. 742
Page 708
Insurance Company a/s/o Diane Villani Editions; Centennial Insurance Company a/s/o John Szoke Graphics, Inc.; and Aetna Casualty Company a/s/o Powell Kleinschmidt, Plaintiffs-Appellants,v.
LITGEN CONCRETE CUTTING AND CORING COMPANY, Defendant-Appellee
No. 1-02-2296.
Appellate Court of Illinois, First District, Second Division.
February 10, 2004.
Michel T. Reagan of Herbolsheimer, Lannon, Henson, Duncan and William E. Spizzirri of Kralovec & Marquard, Chtd. (Michael T. Reagan and William E. Spizzirri, of counsel), Chicago, for Appellee.
Justice CAHILL delivered the opinion of the court:
We address an issue raised by the same litigants who were before our supreme court in Dubina v. Mesirow Realty Development, Inc., 197 Ill.2d 185, 258 Ill.Dec. 562, 756 N.E.2d 836 (2001). In that case, the supreme court held that the settlement agreements reached by the parties violated the good-faith requirement of the Joint Tortfeasor Contribution Act (Act) (740 ILCS 100/0.01 et seq. (West 1994)).
The case before us has a long procedural history. Earlier opinions were: Dubina v. Mesirow Realty Development, Inc., 283 Ill. App.3d 36, 218 Ill.Dec. 551, 669 N.E.2d 694 (1996), rev'd, 178 Ill.2d 496, 227 Ill.Dec. 389, 687 N.E.2d 871 (1997); and Dubina v. Mesirow Realty Development, Inc., 308 Ill. App.3d 348, 241 Ill.Dec. 681, 719 N.E.2d 1084 (1999). The litigation arose from a fire in 1989 that destroyed a building that housed several art galleries in Chicago's River North district. The original plaintiffs were artists and gallery owners, including BHI Corporation and Michael Dubina, who suffered losses in the fire. The original defendants were companies, including Mesirow Realty Development, Inc. and Litgen Concrete Cutting and Coring Co. (Litgen), that were renovating the building at the time of the fire. The 35 separate actions were consolidated for discovery and trial. The plaintiffs settled with all of the defendants, with the relevant exception of Litgen, before the trial. The settling defendants entered into 29 separate agreements with the plaintiffs, each requiring the plaintiffs to assign their
Under the terms of the agreements, the settling defendants paid plaintiffs $9 million—$4.5 million for the release of plaintiffs' claims against the defendants other than Litgen, and $4.5 million for the assignment to defendants of plaintiffs' claims against Litgen.
In July 1994, the trial court found all 29 of the settlement agreements to be in good faith under section 2(c) of the Act. 740 ILCS 100/2(c) (West 1994). As a result of its good-faith finding, the trial court dismissed the contribution claims between Litgen and the settling defendants. See 740 ILCS 100/2(d) (West 1994) (a tortfeasor who enters into a good-faith settlement is discharged from all liability for any contribution to another tortfeasor); 740 ILCS 100/2(e) (West 1994) (a tortfeasor who enters into a good-faith settlement is not entitled to recover contribution from a tortfeasor whose liability was not extinguished by the settlement). The trial court also granted the plaintiffs' motion to voluntarily dismiss their direct claims against Litgen. After the voluntary dismissal, Litgen appealed, contending that the trial court erred in finding that the settlements had been made in good faith and in dismissing Litgen's contribution claims against the settling defendants.
While Litgen's appeal was pending, the original defendants, as assignees of the original plaintiffs' claims, filed a single complaint against Litgen (95 L 2491) on February 16, 1995, in the circuit court. Based on this filing, the settling defendants filed a motion in the appellate court, arguing that Litgen's pending appeal of the circuit court's good-faith finding must be dismissed because the refiling (95 L 2491) transformed the final orders into nonfinal orders and divested the appellate court of jurisdiction. The appellate court agreed (Dubina, 283 Ill.App.3d at 40, 218 Ill.Dec. 551, 669 N.E.2d 694). But the supreme court reversed and remanded the cause, concluding that the orders from which Litgen appealed were final and appealable (Dubina, 178 Ill.2d at 506, 227 Ill.Dec. 389, 687 N.E.2d 871).
On remand, the appellate court considered Litgen's appeal on its merits and concluded that the trial court erred in finding the settlement agreements were in good faith. The appellate court...
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