Zellers v. Hernandez
941 N.E.2d 928
Ill. App. Ct.2010Background
- Following a May 2004 vehicle collision, Zellers sued Hernandez and Davis for negligence; Davis asserted a contribution counterclaim against Hernandez.
- GMAC Insurance paid and Davis and GMAC settled with Zellers for $17,500, releasing both defendants while excluding Davis's contribution claims against Hernandez.
- Arbitration found Hernandez 100% negligent but did not award monetary damages; the issue became apportionment of fault and the common liability amount.
- Davis moved for judgment on the arbitration award and for the entry of damages equal to the settlement amount; the trial court entered judgment for $17,500 against Hernandez.
- Hernandez appealed, contending the court erred by entering damages despite no monetary award in arbitration and by entering judgment on the contribution counterclaim without a good-faith finding on the settlement.
- On review, the appellate court affirmed, holding that (a) arbitration did not need to specify damages and (b) a good-faith finding was not necessary under the facts.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether judgment on the arbitration award was proper when no monetary damages were awarded at arbitration. | Zellers v. Davis/GMAC: (not applicable); Hernandez argues no money due since arbitration lacked damages. | Hernandez: damages cannot be entered because arbitration did not award money damages. | Yes; judgment on the award permitted because common liability was set and apportionment issue resolved. |
| Whether a good-faith finding on the settlement was required before entering judgment on the contribution award. | Counterplaintiffs: good-faith finding unnecessary or implied by settlement. | Hernandez: need good-faith finding to support entry of judgment. | Not required; settlement presumed in good faith and court properly entered judgment. |
Key Cases Cited
- Mallaney v. Dunaway, 178 Ill. App. 3d 827 (1988) (settlement as common liability presumes good faith; compels contribution analysis)
- Hall v. Archer-Daniels-Midland Co., 122 Ill. 2d 448 (1988) (settlements with release may raise presumption of good faith for contribution)
- Johnson v. United Airlines, 203 Ill. 2d 121 (2003) (settlement effects in contribution depend on context; good-faith analysis differ when all tortfeasors released)
- Thomas v. Leyva, 276 Ill. App. 3d 652 (1995) (misunderstanding arbitration results does not entitle party to modify award)
- Ziarko v. Soo Line Railroad Co., 161 Ill. 2d 267 (1994) (narrowing of common liability concept in Illinois contribution)