St. Paul Fire & Marine Insurance Co. v. City of Waukegan
2017 IL App (2d) 160381
| Ill. App. Ct. | 2017Background
- Juan Rivera was arrested in 1992, confessed after prolonged interrogation, convicted (1993), retried and convicted (1998), retried and convicted again (2009), and finally exonerated and released in 2012; he later sued the City and officers under §1983 and state tort law for wrongful conviction and related conduct.
- Rivera’s complaints alleged coerced/false confession (Fifth Amendment), Brady violations (suppression/destruction of exculpatory evidence), malicious prosecution, conspiracy, failure to intervene, and related state-law claims; his third amended complaint incorporated many prior allegations.
- The City tendered defense/indemnity to its insurers (St. Paul and Travelers); the insurers filed a declaratory-judgment action asserting no duty to defend or indemnify because the insurers’ 2008–09 LEL policies only cover injuries that "happen while this agreement is in effect."
- The parties and trial court focused on the coverage “trigger” question: whether Rivera’s alleged injuries occurred (or were caused) during the 2008–09 policy period (the City contended certain wrongful acts occurred at the 2009 trial; insurers argued the wrongful acts occurred years earlier).
- The trial court followed this court’s prior reasoning in Indian Harbor (and City of Zion) that Rivera’s claims presented a single cause/occurrence predating the 2008–09 policies, granted summary judgment for the insurers, and the City appealed.
Issues
| Issue | Plaintiff's Argument (Insurers) | Defendant's Argument (City) | Held |
|---|---|---|---|
| Trigger: Did Rivera’s lawsuit trigger coverage under 2008–09 policies? | Triggering wrongful acts occurred before 2008–09; no coverage | Wrongful acts (use of confession, Brady violations, conspiracy, failure to intervene) caused injury during 2009 trial/policy period | Held for insurers: single occurrence predated policies; no trigger for 2008–09 policies |
| Are Fifth Amendment and Brady claims separate, discrete triggers? | They are continuations of same injury (malicious-prosecution type); not separate triggers | Fifth Amendment use at 2009 trial and Brady-related failures at retrial are discrete occurrences within policy period | Court rejected multiple-trigger theory; claims treated like malicious prosecution — not separate triggers |
| Does witness/prosecutorial action at trial create liability triggering coverage? | Liability depends on police wrongful acts (occurred earlier); witness immunity shields testimony, so trial testimony alone cannot create coverage | Use of confession at 2009 trial caused a Fifth Amendment injury during policy period, so coverage triggered | Court: testimony is subject to absolute witness immunity; insurer not bound by acts (testimony) that are not actionable — wrongful acts occurred earlier |
| Precedent and stare decisis: should court follow Indian Harbor/City of Zion or Westport/McFatridge? | Follow Indian Harbor and City of Zion: majority rule rejects multiple-trigger theory | Urged following federal district court decisions (Westport) and Seventh Circuit cases allowing other trigger analyses | Court adheres to Indian Harbor/City of Zion; declines to follow Westport or McFatridge; affirms prior appellate approach |
Key Cases Cited
- Nicor, Inc. v. Associated Electronics & Gas Ins. Servs., Ltd., 223 Ill. 2d 407 (Ill. 2006) (applies cause-theory analysis to determine single occurrence from continuous conduct)
- Briscoe v. LaHue, 460 U.S. 325 (U.S. 1983) (witnesses, including police testimony, receive absolute immunity)
- Chavez v. Martinez, 538 U.S. 760 (U.S. 2003) (police abuse producing a coerced confession can implicate due process independent of trial use)
- Imbler v. Pachtman, 424 U.S. 409 (U.S. 1976) (prosecutors have absolute immunity for actions preparing and presenting cases)
- Outboard Marine Corp. v. Liberty Mut. Ins. Co., 154 Ill. 2d 90 (Ill. 1992) (court must compare underlying complaint allegations to policy language to determine whether coverage is triggered)