Opinion ID: 2180482
Heading Depth: 3
Heading Rank: 2

Heading: Estoppel of Elizabeth

Text: American Family urges that it may estop not only Savickas, but also Elizabeth, the plaintiff in the underlying tort action, with the verdict in the criminal trial. At first glance this may seem an unlikely result. Elizabeth clearly was not a party to the criminal suit and in the criminal suit her interests would appear to have been wholly antagonistic to Savickas' interests, just as they are antagonists in the underlying tort suit. However, in this declaratory judgment action it is American Family, not Savickas, who seeks to estop Elizabeth. This is a crucial point. As previously noted, the only source for any duty owed by American Family is its contract with Savickas. Elizabeth cannot proceed against American Family directly before obtaining a judgment against Savickas. See Marchlik v. Coronet Insurance Co., 40 Ill.2d 327, 332-33, 239 N.E.2d 799 (1968). Once she has obtained a judgment against Savickas, Elizabeth's rights against American Family would be wholly derivative of Savickas' contractual right to indemnity, and she can have no greater rights against American Family than he. Meyer v. Aetna Casualty Insurance Co., 46 Ill.App.2d 184, 190, 196 N.E.2d 707 (1964) (As a general rule, a judgment creditor is in no better position in a suit [against an insurance company] than the insured, and any defense which the insurer may assert against the insured may be asserted as a defense against the injured party). See also Murphy v. Urso, 88 Ill.2d 444, 451, 58 Ill.Dec. 828, 430 N.E.2d 1079 (1981) (noting that in garnishment action against insurer the judgment creditor of insured stood in [the] shoes of the insured); McRoberts v. Adams, 60 Ill.2d 458, 464, 328 N.E.2d 321 (1975) (dismissing garnishment action by judgment creditor against insurance company after determining that no coverage was provided by the company to the putative insured for the incident in question). Because of the derivative nature of her rights, Elizabeth is bound by the prior criminal action just as is Savickas in this litigation against American Family. See Ohio Casualty Insurance Co. v. Clark, 583 N.W.2d 377 (N.D. 1998); State Mutual Insurance Co. v. Bragg, 589 A.2d 35 (Me.1991); State Farm Fire & Casualty Co. v. Reuter, 299 Or. 155, 700 P.2d 236 (1985); Tradewind Insurance Co. v. Stout, 85 Hawai`i 177, 938 P.2d 1196 (1997); Safeco Insurance Co. of America v. Yon, 118 Idaho 367, 796 P.2d 1040 (1990). Contra, Massachusetts Property Insurance Underwriting Ass'n v. Norrington, 395 Mass. 751, 756, 481 N.E.2d 1364, 1368 (1985) (recognizing general rule that the injured party has no greater rights than the insured against the insurer but holding that allowing the injured party to proceed against the insurer despite the insured being estopped from doing so does no violence to the substantive principle). See also Aetna Casualty & Surety Co. v. Jones, 220 Conn. 285, 596 A.2d 414 (1991) (insurer granted declaratory judgment that insured's first degree manslaughter conviction established that injuries were intentionally caused and thus not covered by policy); D'Arata v. New York Central Mutual Fire Insurance Co., 76 N.Y.2d 659, 564 N.E.2d 634, 563 N.Y.S.2d 24 (1990) (insurer not required to pay judgment against insured despite insurer's failure to provide defense, because plaintiff in underlying suit was estopped by insured's criminal conviction from relitigating insured's intent); Aetna Life & Casualty Insurance Co. v. Johnson, 207 Mont. 409, 673 P.2d 1277 (1984) (insurer allowed to rely on insured's conviction for arson to bar insured and insurer of surrounding property from recovering for fire damage). Accordingly, in the declaratory judgment action, Elizabeth is precluded from contending that Savickas' actions in shooting the decedent were not intentional.