Secura Insurance Company v. Illinois Farmers Insurance Company

SUPREME COURT CASES

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State: Illinois

Court: Supreme Court

Docket No: 105991 Rel

Case Date: 01/23/2009

Preview:Docket No. 105991.

IN THE SUPREME COURT OF THE STATE OF ILLINOIS

SECURA INSURANCE COMPANY, Appellee, v. ILLINOIS FARMERS INSURANCE COMPANY, Appellant. Opinion filed January 23, 2009.

CHIEF JUSTICE FITZGERALD delivered the judgment of the court, with opinion. Justices Freeman, Thomas, Kilbride, Garman, Karmeier, and Burke concurred in the judgment and opinion.

OPINION Plaintiff Secura Insurance Company (Secura) filed a declaratory judgment action against Illinois Farmers Insurance Company (Farmers) in the circuit court of Du Page County. Secura sought a declaration that a policy of automobile insurance issued by Farmers to Paul Stech obligated Farmers to defend and indemnify Bogoja Muzikoski, doing business as B&A Automotive Repair (B&A Automotive), with regard to an accident involving Stech's automobile. After cross-motions for summary judgment were filed, the trial court granted summary judgment in favor of Farmers. Secura filed a notice of appeal, but did not include a certificate or affidavit indicating the date of filing with the circuit court clerk. The appellate court denied Farmers' motion to dismiss the appeal due to failure to

timely file the appeal, and found in favor of Secura on the merits of the case. 377 Ill. App. 3d 536. We granted leave to appeal (210 Ill. 2d R. 315) and find that the notice of appeal was not timely filed, thus depriving the appellate court of jurisdiction. We therefore vacate the judgment of the appellate court and dismiss the appeal. BACKGROUND The facts are not in dispute. On October 21, 2000, in the course of his employment, B&A Automotive employee Daniel Dill was driving a 1995 Chevrolet Blazer owned by Paul Stech when Dill was involved in an accident with a vehicle driven by Vincent Henehan. B&A Automotive was insured at the time of the accident under a commercial liability policy issued by Secura with limits of $1 million. Stech and his Chevrolet Blazer were insured by Farmers under a policy of automobile insurance. Henehan and his wife subsequently sued Dill and B&A Automotive seeking damages. In this underlying action, the Henehans alleged that Dill was an agent and employee of B&A Automotive at the time of the accident. This lawsuit later settled out of court for $1 million. Secura initially defended both B&A Automotive and Dill in the underlying action under the commercial liability policy. The underlying plaintiffs voluntarily dismissed Dill and accepted a settlement from Secura on behalf of B&A Automotive. Secura filed a complaint against Farmers in the circuit court of Du Page County. It sought a declaration that Farmers owed B&A Automotive defense and indemnity obligations under the automobile policy. Secura also sought a bad-faith finding against Farmers. Farmers asserted affirmative defenses to Secura's complaint. The parties filed cross-motions for summary judgment. Among Farmers' arguments were that B&A, as an employer of Dill, did not qualify as an "insured person" under the policy's definition. The policy states that employers of "insured persons" are excepted from coverage. Secura responded that section 7

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