Pryor v. United Equitable Insurance Company
963 N.E.2d 299
Ill. App. Ct.2011Background
- Pryor injured in an auto collision with an uninsured motorist on Jan 21, 2009.
- Arbitration on Jan 21, 2010 awarded Pryor $9,775.46.
- Pryor executed a release and Pryor provided physician’s lien release; United promised payment.
- Pryor filed March 2, 2010 to confirm the award and alleged bad faith under 215 ILCS 5/155.
- United paid the award on March 12, 2010; United then moved to dismiss and for sanctions.
- Trial court dismissed count II with prejudice (bad faith) and count I as moot; appeal followed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether dismissal under 2-619 was proper given payment occurred after filing | Pryor argues no payment before suit, so 2-619 dismissal was improper. | United contends payment moots the bad-faith claim and supports dismissal. | Dismissal upheld; payment rendered the issue moot. |
| Whether a private action exists under the Administrative Code/Section 155 | Pryor claims a private right to damages for administrative-rule violations. | United argues no private right exists; 155 limits to certain unsettled insurance-claim issues. | No private right under the Code; 155 does not support Pryor's private claim here. |
| Whether United’s conduct was vexatious under 155 to support fee/damages | Pryor contends United vexatiously delayed payment. | United argues no vexatious delay given timely payment within 90-day window. | Not vexatious; delay not unreasonable in light of appeal window. |
Key Cases Cited
- Vine Street Clinic v. HealthLink, Inc., 222 Ill. 2d 276 (2006) (private action not available for administrative-code violations)
- Weis v. State Farm Mutual Automobile Insurance 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) (section 155 applies when liability/amount or delay is unsettled)
- Estate of Price v. Universal Casualty Co., 322 Ill. App. 3d 514 (2001) (vexatious delay depending on totality of circumstances)
- Mobil Oil Corp. v. Maryland Casualty Co., 288 Ill. App. 3d 743 (1997) (insurer's attitude and deprivation of use of property relevant to 155)
- Daniels v. Union Pacific R.R. Co., 388 Ill. App. 3d 850 (2009) (de novo standard for reviewing 2-619 dismissals)