The County of McLean v. States Self-Insurers Risk Retention Group, Inc.
33 N.E.3d 1012
Ill. App. Ct.2015Background
- Alan Beaman was arrested in 1994, convicted in 1995 for murder, and sentenced to 50 years; the Illinois Supreme Court reversed his conviction in 2008 for Brady violations and the State dismissed charges in January 2009.
- Beaman filed a 2012 federal suit against McLean County officials (Reynard, Souk, Brown) asserting Section 1983 and state-law claims, including malicious prosecution; he alleged concealment of exculpatory evidence.
- McLean County (and the individual officials) sought a declaratory judgment in 2013 against their insurer, States Self-Insurers Risk Retention Group, Inc., seeking coverage for defense costs under a policy effective March 2008–March 2009.
- The policy provided Coverage Part I for "personal injury" (defined to include injury caused by malicious prosecution) and defined the date of an "occurrence" for personal injury as "the date that the first offense took place or is alleged to have taken place."
- The trial court granted summary judgment for the insureds, holding the malicious-prosecution claim "occurred" when the criminal charges were dismissed during the policy period, and ordered the insurer to pay defense costs.
- The insurer appealed, arguing the triggering "occurrence" was the earlier arrest/prosecution (outside the policy period); the appellate court reversed, holding the injury from malicious prosecution occurred at the time of arrest/prosecution, not at exoneration.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| When did the policy’s "occurrence" for a malicious-prosecution "personal injury" happen? | The malicious-prosecution claim did not accrue until termination in plaintiffs’ favor; thus the occurrence happened when charges were dismissed in Jan 2009 (inside the policy period). | The occurrence is the wrongful act (initiation/arrest/prosecution), which happened in the 1990s (outside the policy period), so no coverage. | Held for defendant: the injury "caused by malicious prosecution" occurred at the time of arrest/prosecution, not at exoneration; no coverage under the March 2008–March 2009 policy. |
Key Cases Cited
- People v. Beaman, 229 Ill. 2d 56 (Illinois Supreme Court) (reversal of Beaman's conviction for Brady violation)
- West American Ins. Co. v. Yorkville Nat'l Bank, 238 Ill. 2d 177 (Illinois Supreme Court) (rules on insurance policy interpretation; give effect to policy language)
- Hurlbert v. Charles, 238 Ill. 2d 248 (Illinois Supreme Court) (elements required to state malicious-prosecution claim)
- St. Paul Fire & Marine Ins. Co. v. City of Zion, 18 N.E.3d 193 (Ill. App. Ct.) (malicious-prosecution injury occurs at initiation/arrest/prosecution)
- Gulf Underwriters Ins. Co. v. City of Council Bluffs, 755 F. Supp. 2d 988 (S.D. Iowa) (release from prison is not an "injury" for triggering coverage)
- Muller Fuel Oil Co. v. Ins. Co. of N. Am., 232 A.2d 168 (N.J. Super. Ct. App. Div.) (distinguishing accrual of malicious-prosecution cause of action from triggering occurrence for insurance coverage)