963 N.E.2d 299
Ill. App. Ct.2011Background
- Pryor was injured in an auto collision with an uninsured motorist on January 21, 2009.
- Pryor and United Equitable Insurance contested UM claim; arbitration on January 21, 2010 awarded $9,775.46.
- Pryor provided executed release and trust; United requested release of physician's lien and indicated payment would follow.
- Pryor filed suit March 2, 2010 seeking to confirm the arbitration award and damages for bad faith under 215 ILCS 5/155.
- United paid the arbitration award on March 12, 2010.
- Trial court dismissed count II with prejudice, dismissed count I as moot, and denied sanctions; Pryor appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether dismissal under 2-619 was proper before payment> | Pryor contends no judgment or payment predated filing. | United argues dismissal was proper as matter arising from 2-619 and related authorities. | Affirmed dismissal; no error in 2-619 ruling. |
| Whether private action under admin rules exists and supports 155 claim | Pryor alleges 919.50 violations and private right to sue. | United asserts no private right to enforce Admin Code; 155 limited use. | No private right under code; 155 not triggered for these facts. |
| Whether United's conduct was vexatious delay under 155 | Delays and shifting burdens constituted bad faith delay. | Delay was reasonable and within statutory window; no vexatious conduct. | No vexatious or unreasonable delay; no 155 violation. |
Key Cases Cited
- Vine Street Clinic v. HealthLink, Inc., 222 Ill.2d 276 (2006) (private right to enforce admin rules not available)
- Weis v. State Farm Mut. Auto. Ins. Co., 333 Ill.App.3d 402 (2002) (enforcement of insurance rules delegated to Dept. of Insurance)
- Neiman v. Economy Preferred Insurance Co., 357 Ill.App.3d 786 (2005) (155 applies where liability/amount or delay is at stake; factors for vexatious delay)
- Estate of Price v. Universal Casualty Co., 322 Ill.App.3d 514 (2001) (unreasonable delay by insurer can support 155 relief under totality of circumstances)
- Mobil Oil Corp. v. Maryland Casualty Co., 288 Ill.App.3d 743 (1997) (factors to assess vexatious conduct and use of property)