Empress Casino Joliet Corporation v. W.E. O’Neil Construction Co.

Illinois Appellate Court
Civil Court
Subrogation
Citation
Case Number: 
2016 IL App (1st) 151166
Decision Date: 
Wednesday, November 16, 2016
District: 
1st Dist.
Division/County: 
Cook Co.
Holding: 
Affirmed in part and reversed and remanded in part.
Justice: 
FITZGERALD SMITH

(Court opinion corrected 12/6/16.) Fire occurred during extensive renovation project at casino, resulting in extensive damage to casino. Casino received $81.15 million in insurance payments from 3 separate insurers under 3 separate insurance policies. Waiver of subrogation provision is not limited to negligence actions, but can apply with equal force to contract claims. As parties agreed that loss and damage from fire would be borne solely by casino's property insurance, casino thus waived all claims against contractors arising from such loss. Plaintiffs failed to present facts showing that "time is of the essence" provision was material to contract such that Defendants' failure to complete project within contemplated time frame would negate waiver of subrogation provision. Contract provisions requiring contractor to obtain liability insurance and to indemnify casino for claims arising out of performance of work did not conflict with waiver of subrogation clause, so as to render those provisions an exception to the waiver. (LAVIN and COBBS, concurring.)