Opinion ID: 1907442
Heading Depth: 1
Heading Rank: 5

Heading: Enforcement of Settlement Agreement Against GM & C

Text: GM & C next argues that the trial court erred in enforcing the settlement agreement against GM & C because (1) Markel caused the delay in the payment of the amounts due under the settlement until after Reliance Insurance Company had entered liquidation and (2) Markel could have sought recovery from the Illinois Insurance Guaranty Fund. GM & C's argument that it should be relieved of its obligation under the settlement agreement because Markel caused the funding of the settlement to be delayed is without merit. GM & C blames Markel for the delay in funding the settlement; however, the supplemental agreement provides that payment under the settlement agreement is not due until Mountain Movers' claims against Markel are resolved. GM & C itself is a party to the supplemental agreement, and while GM & C may have agreed to the delay only because Markel insisted on it, GM & C nevertheless did agree to it. GM & C cannot now hold Markel liable for a delay to which it earlier agreed. GM & C's argument that the trial court erred in enforcing the settlement agreement against it because Markel could have sought recovery from the Illinois Insurance Guaranty Fund is likewise without merit. While Markel disputes that it has a right to recover from the Illinois Insurance Guaranty Fund, whether it has such a right is not relevant to this Court's decision when the clear terms of the settlement agreement establish that Markel is entitled to recover from GM & C. It may be that Markel could have pursued a claim with the Illinois Insurance Guaranty Fund; however, GM & C has cited no statute, caselaw, or contractual obligation that would require Markel to abandon its claim against GM & C and seek payment solely from the Illinois Insurance Guaranty Fund.