Ogren v. Graves

• Decision Date: 24 June 1976
• Docket Number: No. 75--437,75--437
• Citation: 350 N.E.2d 249,39 Ill.App.3d 620
• Parties: Elrene E. OGREN, Plaintiff-Appellant, v. Danny C. GRAVES, Defendant-Appellee.
• Court: United States Appellate Court of Illinois

Page 249

350 N.E.2d 249

39 Ill.App.3d 620

Elrene E. OGREN, Plaintiff-Appellant, v.Danny C. GRAVES, Defendant-Appellee.

No. 75--437.

Appellate Court of Illinois, Second District, Second Division.

June 24, 1976.

Yalden & Ridings, Rockford, for plaintiff-appellant.

Gilbert, Powers & Mateer, Rockford, Edwin T. Powers, Jr., for defendant-appellee.

THOMAS J. MORAN, Presiding Justice.

Plaintiff, Elrene Ogren, sued defendant for injuries she sustained in a collision between defendant's car and the car in which she was riding, driven by her husband.Defendant filed a motion to dismiss the complaint alleging that plaintiff had executed a general release before commencement of suit.Plaintiff asserted, as an affirmative matter, that the release was invalid.After a bench hearing on the hearing on the issue of the validity of the release, the trial court granted defendant's motion to dismiss.

Plaintiff appeals contending that the trial court erred in granting defendant's motion because the release was invalid, she received no consideration for signing it, and the question of the release's validity should have been submitted to a jury for determination.

Allstate Insurance Company was plaintiff's husband's liability insurer, and State Farm Insurance Company was defendant's.The evidence at the hearing on defendant's motion to dismiss showed that John Lucas, a representative of State Farm, contacted plaintiff and her husband shortly after the collision.After several conversations, plaintiff told him that Allstate had paid all their bills and that they were going to let that company 'handle the whole thing.'Allstate paid plaintiff her medical expenses incurred due to her injuries in the collision, and paid Mr. Ogren's collision claim, less salvage and $100, the amount deductible from his collision coverage.Thereafter, Lucas directed a general release form to Allstate requesting that the forms be executed by the Ogrens.Allstate forwarded the release to Mr. Ogren with a cover letter stating:

'We have now made a settlement of the claim for the collision damage to your car.In order to complete the handling of this claim, we need your signature on the enclosed release forms.

Please sign the releases in ink where indicated and return them in the enclosed envelope as soon as possible.You will hear from us as soon as we receive payment from the other party.'

The release absolving the defendant from any and all claims of plaintiff was executed by the Ogrens and returned through Allstate to State Farm.Lucas issued a check for $2837.30 (the amount expended by Allstate plus $100 deductible) payable to the Ogrens and Allstate, and the latter then issued its check in the amount of $100 to repay Mr. Ogren the amount deducted under his Allstate policy.The check was endorsed with the Ogrens name but the proof showed that they did not endorse it.No evidence was offered as to the nature or extent of plaintiff's claimed personal injuries.

A release, in essence, is the abandoning of a claim to the person against whom the claim exists and where the release is executed with knowledge of its meaning, causes of action covered by the release are barred.(Shaw v. Close, 92 Ill.App.2d 1, 3, 235 N.E.2d 830(1968).)Because the law favors compromise, the party contending that a release was secured as a result of fraud, misrepresentation, or mistake, must prove such by clear and convincing evidence.(Child v. Lincoln Enterprises, Inc., 51 Ill.App.2d 76, 82, 200 N.E.2d 751(1964).)A person claiming that a release is invalid because of a mistake must show that the mistake is mutual.A unilateral or self induced mistake will be insufficient to void a release.(Welsh v. Centa, 75 Ill.App.2d 305, 311--12, 221 N.E.2d 106(1966);seeHudson v. Thies, 35 Ill.App.2d 189, 201--02, 182 N.E.2d 760(1962), aff'd27 Ill.2d 548, 190 N.E.2d 343(1963).)On review the trial court's finding will not be set aside unless it is against the manifest weight of the evidence.Child v. Lincoln Enterprises, Inc., supra, 51 Ill.App.2d page 82, 200 N.E.2d 751.

On appeal, plaintiff contends that the release was invalid because she was deceived by fraudulent representations to sign the release and received no consideration for its execution.In support of the asserted fraudulent inducement to sign, plaintiff claims that Allstate, by negotiating with State Farm and forwarding the release to plaintiff, became the agent of State Farm.From this premise, plaintiff then argues that Allstate, as agent of State Farm, induced her to execute the release for the purpose of recovering her husband's $100 deductible and its own expenses when, in fact, the release was a device used by State Farm to avoid any payment to her for personal injuries.

Plaintiff's argument fails because of its faulty premise.The bare conclusionary statement that Allstate, by negotiating with State Farm and forwarding the release to plaintiff, without further proof, is insufficient evidence to establish such agency under the circumstances here present.The facts in the record before us dictate an opposite conclusion.After Lucas had talked with plaintiff on several occasions, she admits informing him that Allstate...