Skaperdas v. Country Casualty Insurance Company
2013 IL App (4th) 120986
Ill. App. Ct.2013Background:
- In 2009 Skaperdas bought an auto policy from Country Casualty through agent Tom Lessaris; the declarations listed only Skaperdas as the named insured.
- Day (Skaperdas’ partner) and her son Jonathan Jackson asserted underinsured-motorist claims after a 2009 bicycle injury; Country Casualty denied coverage because Day and Jackson were not listed as named insureds.
- Plaintiffs sued Lessaris (for negligence in procuring insurance) and Country Casualty (including respondeat superior and declaratory relief) in 2012.
- Lessaris and Country Casualty moved to dismiss under section 2-619, arguing no duty of care existed because Lessaris was an "agent" rather than a "broker," so agents owe no duty to insureds under common law; Country Casualty argued it could not be vicariously liable if Lessaris owed no duty.
- The trial court granted the motions, holding the agent/broker common-law distinction meant Lessaris owed no duty; plaintiffs appealed.
Issues:
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 735 ILCS 5/2-2201 imposes a statutory duty of ordinary care on insurance producers and eliminates the common-law agent/broker duty distinction | Plaintiffs: §2-2201 and the Insurance Code define "insurance producer" to include licensed sellers/negotiators, so agents and brokers alike owe ordinary care in procuring insurance | Defendants: Common-law distinction remains; an insurance agent owes duties to the insurer, not to third-party insureds, so Lessaris owed no duty to plaintiffs | Court: §2-2201 imposes an ordinary-care duty on insurance producers and eliminates the agent/broker distinction for duty-of-care purposes; reversal and remand |
Key Cases Cited
- Country Mutual Insurance Co. v. Carr, 366 Ill. App. 3d 758 (Ill. App. Ct. 2006) (interpreting §2-2201 to impose an ordinary-care duty on insurance producers, including agents and brokers)
- Phoenix Insurance Co. v. Rosen, 242 Ill. 2d 48 (Ill. 2011) (standard: de novo review of dismissal)
- Kanter v. Deitelbaum, 271 Ill. App. 3d 750 (Ill. App. Ct. 1995) (discussing brokers’ fiduciary duties to customers)
- Economy Fire & Casualty Co. v. Bassett, 170 Ill. App. 3d 765 (Ill. App. Ct. 1988) (discussing agents’ fiduciary duties to insurers)