(Modified upon denial of rehearing 5/18/20.) Plaintiff company filed 2 suits against owners of property upon which it had made improvements; court entered judgments against 2 owners (Sud and Methodist). Methodist's insurer (ATG) entered into settlement agreement with Plaintiff, and Sud filed petition for release of judgments. Sud then filed suit against Plaintiff, Methodist, ATG for conversion, fraud, conspiracy, slander of title, quiet title and breach of UCC warranty, after ATG, pursuant to assignment from Plaintiff, obtained additional funds from Sud through letter of credit Sud posted on appeal. Court erred in denying Sud's petition for release of judgments, and erred in granting summary judgment against Sud on its claims against Plaintiff, Methodist, and ATG. Court abused its discretion in ruling that ATG's payment to Plaintiff was from a collateral source, as payment came from an entity related to and acting on behalf of a defendant, and collateral-source rule does not apply where Plaintiff did not allege fraud, tort, or willful and wanton conduct. Sud was entitled to a setoff in the amount of ATG's payments to Plaintiff. Assigned from Plaintiff to ATG is invalid, as judgment was fully paid, and ATG had no right to draw on Sud's letter of credit. (WRIGHT, concurring; McDADE, dissenting.)
Illinois Appellate Court
Civil Court
Judgments