Gulino v. Economy Fire and Casualty Company
971 N.E.2d 522
Ill. App. Ct.2012Background
- Gulino obtained an all-risk homeowner’s policy from Economy covering his Wilmette home for Jan 22, 2006 to Jan 22, 2007.
- In Feb 2006 Gulino found basement flooding from a burst pipe; contractor and village later deemed the home dangerous and uninhabitable.
- Economy paid for some water-damage items but denied a structural-loss claim, citing non-collapse and neglect exclusions.
- Gulino alleged a portion of the basement ceiling collapsed, causing heating failure and subsequent water damage from frozen pipes.
- A village inspector and an architect testified to heavy debris on the first floor and bowed/bending floor joists due to load, suggesting possible non-sudden collapse.
- The trial court granted summary judgment for Economy; Gulino appealed asserting triable issues on fortuity, collapse, and neglect exclusion.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the loss was fortuitous and covered | Gulino argues the collapse was a covered fortuitous event. | Economy contends the loss was not fortuitous as debris load caused non-sudden damage. | Fortuity is a legal question; issue remains factually disputed. |
| Whether the loss constituted a collapse under the policy | Gulino asserts a portion of the basement ceiling caved in, triggering coverage. | Economy claims no entire collapse; only sagging/settling excluded from coverage. | Partial caving-in can trigger coverage; court rewinds to consider facts on collapse. |
| Whether the neglect exclusion applies for failing to preserve property | Gulino did not knowingly neglect preservation; debris buildup occurred over years but may not be due to him. | Economy argues Gulino’s failure to save/preserve after loss triggers exclusion. | Material factual dispute remains; exclusion not dispositive at summary judgment. |
Key Cases Cited
- Johnson Press of America, Inc. v. Northern Insurance Co. of New York, 339 Ill. App. 3d 864 (2003) (proves prima facie burden and fortuity framework for all-risk policies)
- Wallis v. Country Mutual Insurance Co., 309 Ill. App. 3d 566 (2000) (insurer bears burden to show exclusion after prima facie case)
- United National Insurance Co. v. Faure Brothers Corp., 409 Ill. App. 3d 711 (2011) (liberal construction of exclusions against insurer)
- Cincinnati Insurance Co. v. American Hardware Manufacturers Ass’n, 387 Ill. App. 3d 85 (2008) (fortuity is a legal question for court; causation fact question remains)
- Pekin Insurance Co. v. Miller, 367 Ill. App. 3d 263 (2006) (natural and ordinary consequences of an act are not an accident)
- Johnson Press of America, Inc. v. Northern Insurance Co. of New York, 339 Ill. App. 3d 864 (2003) (reiterates burden-shifting and fortuity standards)
- Fremont Casualty Insurance Co. v. Ace-Chicago Great Dane Corp., 317 Ill. App. 3d 67 (2000) (defines collapse and related interpretations)
- Zurich Insurance Co. v. Raymark Industries, Inc., 145 Ill. App. 3d 175 (1986) (treats collapse triggers as separate from complete fall)