American Family Mutual Insurance Co. v. Plunkett
14 N.E.3d 676
Ill. App. Ct.2014Background
- McGrath's home suffered water damage due to alleged design/construction defects; American Family insured McGrath and settled federal court damages of $1,130,680.16.
- American Family requested an assignment of McGrath's subrogation rights to the extent of payment, but McGrath did not respond.
- American Family filed an equitable subrogation suit, later dismissed with prejudice for lack of an executory assignment; it then pursued specific performance to obtain the assignment, which was dismissed and later reversed on appeal, with remand leading to assignment execution.
- After repeated proceedings, McGrath executed a written assignment on October 31, 2011, transferring his interest to American Family to the extent of the settlement; American Family later asserted this assignment was received in June 2012, after it had moved for summary judgment.
- In October 2012, American Family filed this suit as McGrath’s contractual subrogee; defendants moved to dismiss under the statute of limitations and res judicata; the trial court held equitable tolling applied, and certified a question under Rule 308 for review.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether equitable tolling can toll the statute of limitations | American Family contends tolling applies due to assignment delay | Defendants contend no extraordinary circumstances; tolling not warranted | Equitable tolling does not apply |
Key Cases Cited
- Williams v. Board of Review, 241 Ill. 2d 352 (Ill. 2011) (equitable tolling applied in exceptional circumstances under certain federal-law-like analyses)
- Ralda-Sanden v. Sanden, 2013 IL App (1st) 121117 (Ill. App. 1st Dist. 2013) (equitable tolling where information was unusually withheld and prevented assertion)
- Clay v. Kuhl, 189 Ill. 2d 603 (Ill. 2000) (extrordinary barriers may justify tolling; cited for standard)
- Schultz v. Gotlund, 138 Ill. 2d 171 (Ill. 1990) (discussed as context for subrogation theories (contractual vs. equitable))
- Kaufmann v. Jersey Community Hospital, 396 Ill. App. 3d 729 (Ill. App. 1st Dist. 2009) (equitable tolling rarely applied; cited for limits on tolling)
- Benge v. State Farm Mutual Automobile Insurance Co., 297 Ill. App. 3d 1062 (Ill. App. 4th Dist. 1998) (contractual subrogation controls where a subrogation clause exists)