American Family Mutual Insurance Co. v. King

SUPREME COURT CASES

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State: Illinois

Court: 2nd District Appellate

Docket No: 2-07-0094 Rel

Case Date: 08/31/2007

Preview:No. 2--07--0094 Filed: 8-31-07 ______________________________________________________________________________ IN THE APPELLATE COURT OF ILLINOIS SECOND DISTRICT ______________________________________________________________________________ AMERICAN FAMILY MUTUAL INSURANCE COMPANY, ) Appeal from the Circuit Court ) of Du Page County. ) Plaintiff-Appellant, ) ) v. ) No. 06--AR--1687 ) LORRAINE KING, ) Honorable ) Kenneth A. Abraham, Defendant-Appellee. ) Judge, Presiding. _________________________________________________________________________________ JUSTICE CALLUM delivered the opinion of the court: Plaintiff, American Family Mutual Insurance Company, filed a complaint in the circuit court of Du Page County against defendant, Lorraine King, seeking a trial on defendant's claim under the uninsured motorist coverage of a policy that plaintiff issued to her on June 5, 2003. The claim arose from a motor vehicle accident on July 22, 2003, and according to the complaint, it was submitted to a private arbitration proceeding that resulted in an award of $39,000 to defendant. Defendant moved to dismiss the complaint, pursuant to section 2--619 of the Code of Civil Procedure (735 ILCS 5/2--619 (West 2006)), on the basis that, under the terms of the policy, the arbitration award was binding. The trial court granted the motion and this appeal followed. We reverse and remand. The policy provides that "[i]f any arbitration award exceeds the minimum limit of the Illinois Safety Responsibility Law, either party has a right to trial on all issues in any court having jurisdiction." The policy further provides that any arbitration award not exceeding the minimum

No. 2--07--0094 limit of the "Illinois Safety Responsibility Law" is binding. Chapter 7 of the Illinois Vehicle Code (625 ILCS 5/7--101 et seq. (West 2006)), which is known as the Illinois Safety and Family Financial Responsibility Law, prohibits operation of a motor vehicle without liability insurance. See 625 ILCS 5/7--601 (West 2006). At all relevant times--both when the policy was issued and at the time of the accident--section 7--203 of the Illinois Safety and Family Financial Responsibility Law (625 ILCS 5/7--203 (West 2006)) required insurance coverage of at least $20,000 for bodily injury to, or the death of, a single person. In her motion to dismiss, defendant asserted that "at the time of the arbitration award, the Illinois Safety Responsibility Law's minimum limits were $50,000.00." In support of this assertion, however, defendant did not cite the Illinois Safety and Family Financial Responsibility Law. Instead, she cited section 143a(1) of the Illinois Insurance Code (215 ILCS 5/143a(1) (West 2006)). At the time the policy was issued and at the time of the accident, section 143a(1) provided that the decision of a panel of arbitrators on an uninsured motorist coverage claim "shall be binding for the amount of damages not exceeding the limits for bodily injury *** set forth in Section 7--203 of the Illinois Vehicle Code." 215 ILCS 5/143a(1) (West 2002). However, pursuant to an amendment that took effect after the accident (see Pub. Act 93--485,

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