 |
 |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|
|
|
|
Gillen v. State Farm Mutual Automobile Insurance Co.5/19/2005
Docket No. 98919-Agenda 13-March 2005.
In this appeal we examine a setoff provision in an automobile insurance policy issued by State Farm Mutual Automobile Insurance Company. The setoff provision permits State Farm to reduce its liability for uninsured-motorist coverage by the amount paid to or for the insured "under any worker 's compensation , disability benefits, or similar law." At issue is whether this provision applies to medical benefits paid by the City of Chicago for one of its employees, pursuant to section 22-306 of the Illinois Pension Code (Pension Code) (40 ILCS 5/22-306 (West 2002)), and the implementing municipal ordinance (Chicago Municipal Code ยง3-8-190 (1990)).
The trial court ruled in favor of State Farm. The appellate court reversed. 349 Ill. App. 3d 779. We affirm the judgment of the appellate court.
BACKGROUND
Scott Gillen was employed by the Chicago fire department as a paramedic. On December 23, 2000, he responded to an emergency call for assistance at the scene of a motor vehicle collision. While at the scene, Scott was struck by an uninsured motor vehicle driven by Carlando Hurt. Scott received medical treatment at Christ Hospital, but died the same day from his injuries. The City of Chicago paid Scott's medical expenses, which totaled $76,612.10. Payment was authorized by a municipal ordinance adopted in accordance with the Pension Code.
Teresa Gillen, Scott's wife and special administrator of Scott's estate, made a claim with State Farm for uninsured-motorist benefits in the policy amount of $100,000. The uninsured-motorist provision contains a limitation of liability clause, which states:
"Any amount payable under this coverage shall be reduced by any amount paid or payable to or for the insured under any worker 's compensation , disability benefits, or similar law."
Relying on this provision, State Farm set off the $76,612.10 of medical benefits paid by the City of Chicago on behalf of Scott against the $100,000 of uninsured-motorist coverage, and delivered to Teresa a check for the balance of $23,387.90. Teresa subsequently filed a complaint for declaratory judgment in the Cook County circuit court (see 735 ILCS 5/2-701 (West 2002)), seeking a declaration that State Farm is not entitled to a setoff under the policy language and as a matter of public policy. State Farm moved for judgment on the pleadings. See 735 ILCS 2-615(e) (West 2002). State Farm argued that the setoff provision "had the approval" of this court (see Ullman v. Wolverine Insurance Co., 48 Ill. 2d 1 (1970)) and had been found to apply to benefits received by Chicago fire department personnel under the Pension Code (see State Farm Mutual Automobile Insurance Co. v. Murphy, 263 Ill. App. 3d 100 (1994)). The trial court granted State Farm judgment on the pleadings, dismissing Teresa's complaint with prejudice. Teresa appealed.
On appeal, Teresa argued that the setoff provision does not list medical payments made pursuant to a pension as a setoff option, and enforcing the setoff provision against pension benefits would violate public policy. State Farm argued, as it did in the trial court, that under Ullman and Murphy the setoff was valid. The appellate court reversed: "It is our view that Teresa's arguments prevail, and to the extent Murphy presses to the contrary, it must be abrogated." 349 Ill. App. 3d at 781. Thus, the appellate court held that State Farm was not entitled to a setoff and was liable to Teresa for the full amount of the uninsured-motorist coverage. 349 Ill. App. 3d at 789. We allowed State Farm's petition for leave to appeal. See 177 Ill. 2d R. 315.
ANALYSIS
I.
Page 1 2 3 4 5 6 7 Illinois Personal Injury Attorneys
Personal Injury Lawyers
|
| |
to fill out a simple form to connect to Personal Injury Lawyers in your area.
|
|