Court Opinion

ID: 9739220
Source: CourtListenerOpinion
Date Created: 2023-08-26 20:10:48.426141+00
Date Added: 2024-06-11T07:24:10.756535
License: Public Domain

JUSTICE McMORROW, dissenting: I agree with the majority’s view that collateral estoppel is not the proper focus for this court’s review of the trial court’s challenged ruling that the defendant-appellants should be precluded from relitigating the specific and limited coverage issues decided by the jury. I disagree with the majority’s determination that the trial court’s decision deprived the defendant-appellants of procedural due process. In complex, multiparty litigation, the trial court must exercise considerable discretion to manage the proceedings so that issues are decided both fairly and expeditiously. To accomplish these objectives during the course of the trial itself, it has been suggested that the court appoint lead counsel or trial counsel to serve as representative for other parties also involved in the proceeding. (See, e.g., Manual for Complex Litigation, Second §§ 20.221, 20.222 (1985) (hereinafter Manual for Complex Litigation); Illinois Manual for Complex Litigation 22, 124-25 (1991).) In the case at bar, the plaintiff filed suit against 47 insurance carriers, all of whom presented the common defense that they were not obligated to provide coverage under their respective insurance policies because the plaintiff intended or expected the alleged environmental damage that had occurred. I acknowledge that perhaps it would have been more prudent if, prior to trial, the court had formally appointed lead counsel or trial counsel to act as a representative for the other defendants with respect to the limited issues carved out for resolution in the jury trial. However, the court’s failure to do so is an inadequate ground to reverse the jury’s findings and remand the matter for further proceedings. The trial court found that the defendant who formally appeared at and participated in trial, American Empire, acted as the "virtual surrogate” for the defendant-appellants. I find no manifest error in the trial court’s factual finding in this respect. The defendant-appellants fully participated in all phases of discovery and shared litigation expenses. In addition, the defendant-appellants have been unable to point to any new, different, or additional evidence or argument that they would present upon retrial of the issues decided by the jury. In light of these circumstances, the trial court’s decision in the instant cause did not deprive the defendant-appellants of procedural due process. In my view, the trial court’s ruling was a proper and reasoned exercise of the court’s inherent power to manage and administer the progress of this complex, multiparty litigation, in which the plaintiff sought declarations of insurance coverage with respect to policies issued by 47 insurance carriers named as defendants in the plaintiff’s suit. BACKGROUND On August 21, 1987, CIPS filed its first complaint in Morgan County against 47 insurance carriers. The suit sought a declaratory judgment of the rights and responsibilities of the parties under various insurance policies issued to CIPS by the defendants. Certain of the defendants had issued Comprehensive General Liability (CGL) insurance to CIPS, while others had issued Environmental Impairment Liability (EIL) insurance. CIPS sought coverage under the policies for actions filed against CIPS that arose as a result of alleged environmental damage at and around gas-from-coal manufacturing plant sites owned and operated by CIPS. The record reveals that the trial court undertook painstaking and meticulous efforts to control the progress of the cause and to ensure that the due process rights of the parties were protected by allowing them to participate in all phases of the litigation. In July 1989, the court entered its first case management order. This order set out rules regarding production of insurance policies and confirmations, a general schedule for discovery, filing and service of papers and motions, and filing of objections, protective orders, and motions to compel. The court also ordered the defendants to choose three law firms to act as liaison counsel. The court directed that liaison counsel would have the responsibility to (1) maintain a master service list of all counsel of record, (2) coordinate efforts to draft a consolidated set of document requests from the defendants to CIPS, (3) coordinate and schedule depositions, and (4) coordinate with CIPS’s counsel in the preparation and filing of a joint written report of the status of discovery. In March 1990, the court entered its second case management order. The court directed that CIPS and liaison counsel meet to schedule depositions and to establish a master library of the defendants’ pertinent insurance policies. The court also entered a discovery order, advising that priority would be given to discovery relating to issue of coverage under the EIL insurance policies relating to the Taylorville site, but that other discovery should not be delayed. Later in March 1990, however, the trial judge entered an order withdrawing from the further administration of the case because of its extraordinary time demands, the court’s full schedule, and the limited facilities, budget and personnel in Morgan County. In June 1990, this court transferred the cause to the circuit court of Cook County, where it was assigned to Judge Warren D. Wolfson. At a status hearing between court and counsel in October 1990, the trial court directed the defendants to establish a discovery committee to coordinate the scheduling of depositions and to serve as lead counsel in posing questions during depositions so that relevant information could be obtained without repetition or duplication. Also in October 1990, the trial court entered a third case management order to supplement and revise the courts’ previous case management orders. In this third order, Judge Wolfson instructed that priority for all purposes would be given to the claims relating to the Taylorville site and that, until further order, discovery would be limited to matters relevant to the Taylorville site. The judge set a date for closing of discovery and suggested the parties engage in multiple-track discovery in order to meet that deadline. The judge directed that the taking of discovery depositions should be expeditious, that colloquy of counsel should be minimal, and that the parties should avoid taking depositions on matters that were covered with finality in pleadings or written discovery. The court directed that CIPS and the defendants’ discovery committee negotiate in good faith concerning the order of discovery and the scope of issues to be covered, and that the parties should submit to the court a list of all depositions to be taken. The court’s order also set a date for disclosure of expert witnesses and answers to expert witness interrogatories, as well as dates for filing motions for summary judgment and other substantive motions. Trial on the EIL coverage at the Taylorville site was set for September 1991. At a status hearing between court and counsel on June 17, 1991, the court considered argument from one defendant regarding the effect of an EIL judgment on the non-EIL defendants: "MR. KRAFSUR: Your Honor, I’d like to raise the issue I think Mr. Katauskas raised when we were before you last and that is something additional about the scope of this EIL trial. I think some of the non-EIL carriers are concerned that if it proceeds only with the EIL carriers, that certain matters will have been determined in the case that may affect the non-EIL carriers at a later time. So I was wondering first if the Court had given any consideration to Mr. Katauskas’ remarks so that we can address that more fully with you. THE COURT: Yes, I have thought about it and my inclination is simply to say that I’ll make no decision at this time as to whether any findings I make at this trial are binding or not on other defendants. I’ll simply reserve that as a matter of law for us to discuss issues of issue preclusion and whatever depending on how I rule. If I rule adversely to the defendants and it can be demonstrated that there are other facts I did not hear or other arguments I did not consider, then I’d be inclined to reopen for the defendants, but there would have to be some kind of showing. As to whether the issues of preclusion would apply in this case I haven’t made that determination. I’m not going to concern myself with it until when and if the issue arises. Any guidance you want to give me on it I’ll be happy to take but I’m not going to let it slow up the trial that I’ve now set for September 30th nor will I allow other parties to take part in the trial. *** MR. KATAUSKAS: Just so I understand you, your Honor, you’re saying you don’t know at this time whether any of those findings you make will be the law of the case as to other defendants as well? THE COURT: That’s right, that’s correct.” In July 1991, certain non-EIL defendants filed a motion for leave to participate in the trial between CIPS and American Empire regarding certain coverage issues. At a hearing in August 1991, the court rejected the motion. Trial on the specific and limited issues of coverage under the EIL insurance policy issued by American Empire was conducted in September 1991. In response to special interrogatories, the jury indicated that it found CIPS knew the material at issue at the Taylor-ville site was an "irritant, contaminant or pollutant at the time it was *** discharged.” The jury further indicated that it found that CIPS did not "expect” or "intend” the discharge of the material. Following trial, the court invited briefing and argument on the question of whether the jury’s responses to the special interrogatories would be binding upon the non-EIL defendants who had not formally participated in the trial. In the trial court’s written order of January 16, 1992, the court found that American Empire acted as the "virtual representative” of the other defendants. For this reason, the court determined that traditional elements of collateral estoppel precluded the defendants from relitigating the issues decided in the jury’s answers to special interrogatories. With respect to the evidence presented to the jury on the coverage issues, the trial court specifically observed: "American Empire relied on industry literature and expert witnesses. The writings necessarily were dated, since the case concerned intent and expectations more than 50 years old. The people with direct knowledge of CIPS’ disposal practices at Taylorville are gone. Joining Defendants can do nothing to revive them. The motions filed in this case indicate that all defendants jointly obtained or at least shared industry literature. The defense experts were jointly retained by the defendants. *** It is clear from the depositions and the trial testimony that the experts did not think of themselves as employed by any particular insurance company. It is true that I ordered discovery to be jointly conducted by the defendants. I also have made it clear that joint discovery is never to prejudice the rights of any defendant. No defense expert was renounced or disclaimed by any defendant. The Rule 220 Interrogatory responses show a defense unanimity of position. A trial is shaped by the facts that go into it. I find that American Empire was, in effect, surrogate for Joining Defendants, advancing legal theories and proofs on behalf of all defendants on the issues of intent and expectation. That is substantial participation in the presentation of the case. That is a full and fair opportunity to litigate fact issues in this case: See Restatement (Second) of Judgments, Sec. 39. In short, I find the Joining Defendants are 'the same, in effect,’ as American Empire was in the jury trial. *** I believe it would be contrary to equity and good conscience to conduct a mirror image trial on the issues of fact decided by a jury. I find there is no good reason, consistent with our notions of basic fairness and due process, to allow the Joining Defendants to relitigate the questions answered by a jury.” The majority reverses the trial court’s disposition, relying on "general due process grounds under both the Illinois and Federal Constitutions” and the notion that the "due process clause requires, at a minimum, that a party have a full and fair opportunity to litigate an issue before he is bound by that issue’s resolution.” (158 Ill. 2d at 225-26.) According to the majority, these due process principles were violated in the present case, because "[n]o such opportunity [to have a full and fair opportunity to litigate an issue] was provided to appellants in this case” and because the majority finds "appellants were barred from participation.” (158 Ill. 2d at 226.) The majority believes that the court should have granted either of the alternatives requested by the non-EIL defendant-appellants, i.e., participation in or severance from the trial. The majority expresses "no opinion as to which alternative is to be favored, leaving that to the sound discretion of the trial court *** [to] be considered *** upon remand.” 158 Ill. 2d at 226. ANALYSIS The majority fails to address the particular problems a trial judge confronts when faced with the daunting task of managing a voluminous case involving complex issues and numerous parties. The majority also fails to recognize the increasingly significant and activist role that a trial judge must play in complex, multiparty litigation. (See, e.g., McGovern, Toward a Functional Approach for Managing Complex Litigation, 53 U. Chi. L. Rev. 440, 442-43 (1986) (hereinafter Managing Complex Litigation).) In order to fully administer a complex lawsuit with multiple parties, the trial judge must have the inherent authority to manage the case from discovery through to litigation in a fashion that is both orderly and fair. (See Manual for Complex Litigation § 20.1.) The comments made in the Manual for Complex Litigation echo these concerns: "Complex litigation often involves numerous parties, many of whom have common or similar interests but separate counsel. Traditional procedures — which assume that all papers and documents are served on all attorneys and that each attorney will file motions, present arguments, and conduct examinations — may result in enormous waste of time, money, and energy, as well as in confusion and indirection. In some cases the attorneys on their own coordinate their activities to eliminate any significant problems among themselves or to their clients, other counsel, and the court. More often, however, the court should itself institute special procedures under which the practices normally incident to individual representation are reshaped in the interests of economy and efficiency. Although details vary, the basic approach is to select and empower, by court order if necessary, one or more attorney to act on behalf of other counsel and parties in handling particular aspects of the litigation.” Manual for Complex Litigation § 20.22. The Manual for Complex Litigation suggests that various roles can be given to attorneys to streamline the course of the litigation. For example, the Manual states that "Liaison Counsel” is "generally used to describe attorneys whose primary duties for the group involve essentially administrative matters.” (Manual for Complex Litigation § 20.221.) With respect to lead counsel and trial counsel, the Manual explains that lead counsel "ordinarily have major responsibility for formulating and presenting positions on substantive and procedural issues during the litigation,” whereas trial counsel "may be selected to serve as principal attorney for the group at trial in presenting arguments, making objections, conducting examination of witnesses, and generally organizing and coordinating the work of the other attorneys on the trial team.” (Manual for Complex Litigation § 20.221.) The Manual for Complex Litigation also makes these observations: "In multi-party cases substantial waste of time, as well as confusion, may result unless a limited number of counsel are given primary responsibility at trial for the examination of witnesses and the presentation of objections and arguments. The court should insist that appropriate arrangements be made, whether formally by designating one or more attorneys to serve as lead counsel or members of a trial team ***, or informally by the attorneys deciding who will be chiefly responsible for the examination of particular witnesses. Other counsel should be afforded an opportunity to conduct supplemental examination, particularly on any matters unique to their clients not already covered in prior examination; but redundant examination merely for emphasis should not be permitted to any greater degree than would be appropriate were only a single party involved.” Manual for Complex Litigation § 22.22. Thus, the trial court’s power to control the course of the litigation must include the authority to "arrange parties into coordinated groups and to *** [appoint] Liaison Counsel for administrative services and expenditures on behalf of the group’s members” (State of New Jersey Department of Environmental Protection v. Gloucester Environmental Management Services, Inc. (D.N.J. 1991), 138 F.R.D. 421, 428) as well as the appointment of lead or trial counsel during litigation (In re Ivan F. Boesky Securities Litigation (2d Cir. 1991), 948 F.2d 1358, 1365-66). Similarly, the trial court’s decision to limit the introduction of evidence during the course of trial, or the scope of questioning, is usually a matter within the trial court’s sound discretion. See, . e.g., Manual for Complex Litigation § 22.1 et seqIllinois Manual for Complex Litigation, at 22, 79-99, 124-25. In light of this commentary, I acknowledge that perhaps it might have been more prudent if the trial court in the instant cause had formally appointed American Empire as lead counsel or trial counsel for the hearing on the specific and limited coverage issues decided by the jury in the present cause. However, although American Empire was not formally appointed as lead counsel for the other defendants, the record indicates that American Empire did in fact act as lead counsel, presenting the experts agreed upon by all the defendants, on the issues common to all the defendants, regarding whether CIPS intended or expected the environmental damage that had occurred. I emphasize that the factual issues that were presented to the jury at the trial between CIPS and American Empire are the same issues that form the non-EIL defendants’ theories of their case: if CIPS did not intend or expect the emissions release, then logically CIPS could not have expected or intended the resulting property damage. This issue was common to both American Empire and the non-EIL defendants and imposed upon both American Empire and the non-EIL defendants the same burden of proof, viz., to establish that CIPS expected or intended the emissions that caused environmental damage to the property. And, because in response to the court’s inquiry the non-EIL defendant-appellants failed to articulate any new or additional evidence or argument that they would present in a subsequent trial, I cannot conclude that the trial court’s failure to formally appoint lead counsel was reversible error. Generally, when a party challenges a trial court’s discretionary decision, the pertinent question upon review is whether the court’s ruling was an abuse of discretion that deprived the party of a fair trial. (See, e.g., In re Estate of Hoover (1993), 155 Ill. 2d 402, 420; McDermott v. Metropolitan Sanitary District (1992), 240 Ill. App. 3d 1, 31-43.) Thus, the question in this case is essentially whether the trial court’s refusal to permit the non-EIL defendant-appellants to formally participate in trial amounted to an abuse of discretion that deprived these defendants of a fair hearing on the limited and specific coverage issues presented to and decided by the jury. It is in this context that the defendants’ argument of procedural due process must be analyzed. Although the linchpin of the majority’s ruling is procedural due process, the majority fails to support its analysis with any precedent or jurisprudential basis. Generally, procedural due process means the opportunity to be heard at "a meaningful time and in a meaningful manner.” (Mathews v. Eldridge (1976), 424 U.S. 319, 333, 47 L. Ed. 2d 18, 32, 96 S. Ct. 893, 902.) This principle is a "flexible [one] and calls for such procedural protections as the particular situation demands.” Mathews, 424 U.S. at 334, 47 L. Ed. 2d at 33, 96 S. Ct. at 902. The trial court found that due process was satisfied in the present cause because American Empire acted at trial as the "virtual surrogate” for the non-EIL defendant-appellants. In so ruling, the court specifically relied on section 39 of the Restatement (Second) of Judgments. Section 39 states that generally "[a] person who is not a party to an action but who controls or substantially participates in the control of the presentation on behalf of a party is bound by the determination of issues decided as though he were a party.” (Restatement (Second) of Judgments § 39 (1982).) The determination of whether there has been a sufficient degree of "participation” or "control” depends on all of the surrounding circumstances (e.g., Watts v. Swiss Bank Corp. (1970), 27 N.Y.2d 270, 277, 265 N.E.2d 739, 743, 317 N.Y.S.2d 315, 320), and has been found to arise under factual circumstances very similar to those presented in the instant cause (e.g., Greenwich Insurance Co. v. N. & M. Friedman Co. (6th Cir. 1905), 142 F. 944 (insurance company not party to earlier litigation bound by decision entered in that proceeding, where company attempted to raise identical policy defense already rejected in prior suit); Iowa Electric Light & Power Co. v. Mobile Aerial Towers, Inc. (8th Cir. 1983), 723 F.2d 50 (employer’s claim barred where employer, although not party to earlier litigation, had participated in depositions taken in earlier case and shared certain litigation expenses)). I find no manifest error in the trial court’s factual determination that American Empire was the "surrogate” for the non-EIL defendant-appellants who were not permitted to formally participate in the trial. As the trial court correctly recognized, the factual issues decided at the EIL trial were virtually identical to the factual assertions relied upon by the non-EIL defendant-appellants. Moreover, the discovery undertaken by all of the defendants, including the non-EIL defendant-appellants, was joint discovery, and all of the defendants cooperated extensively in their discovery efforts. For example, the defendants jointly retained and prepared experts for trial; one expert, Charles Fetter, stated in his deposition that his fees were paid by "the defense group.” The defendants also filed joint Rule 220 interrogatory responses. If any defendant wished to disassociate itself from the common defense group, the defendant was free to do so. In response to the court’s specific inquiry, none of the non-EIL defendant-appellants could provide the court with additional evidence or argument it wished to present at a subsequent trial. No new evidence is likely to appear, since all of the discovery relating to the Taylorville site was jointly conducted by the defendants and has long since closed. In light of these circumstances, there was no abuse of discretion in the trial court’s determination that the non-EIL defendant-appellants should not be permitted to relitigate the question of whether CIPS intended or expected the emissions or damages at issue with respect to the Taylorville site. As the trial court properly observed, the non-EIL defendant-appellants seek to conduct a "mirror image” trial in the hopes of convincing a second jury, based on the same evidence and arguments already considered and rejected by the jury, to reach a different result. CIPS correctly argues that principles of due process clearly do not compel such a profound waste of judicial resources. Defendants in complex, multiparty litigation do not have a constitutional right to relitigate factual issues determined in an earlier phase of the proceeding. Due process does not require that parties be given multiple opportunities to raise the same question. (Illinois Crime Investigating Comm’n v. Buccieri (1967), 36 Ill. 2d 556, 565.) There is no cogent reason, under due process analysis or on other basis, to afford to the non-EIL defendant-appellants the luxury of presenting to a second jury- (and possibly 47 juries) the same arguments and evidence that the first jury has already heard, considered, and rejected. The trial court’s decision to bar the non-EIL defendant-appellants from relitigating the issues decided by the jury’s response to special interrogatories was a proper exercise of the court’s discretionary power to manage and regulate the progress of the litigation CIPS had instituted against 47 defendant insurance carriers. The record in the present case is replete with instances where the trial court entered orders that streamlined the course of discovery, appointed liaison counsel, and set various dates for the progress of the litigation. These were admirable efforts by the trial court and their significance should not go underestimated. The record fully demonstrates that the trial court was judicious and meticulous in its efforts to hand down rulings that would further the progress of the litigation without sacrificing the due process rights of any of the parties. I can find no sound reason to reverse the able trial court’s ruling in the present cause. Complex litigation involving multiple defendants calls upon a trial judge to exercise considerable skill and judgment to manage the litigation so that matters are resolved both expeditiously and fairly. Because of its complex nature, such litigation requires that the trial judge be more actively involved in the administration and management of the case as it progresses through discovery to trial. I fear that the majority’s disposition fails to appreciate the special circumstances presented when a trial judge must preside over complex, multiparty litigation. I also believe that the majority fails to respond to the call for guidance in this growing and complicated area, despite the certified questions posed by the trial court in the present case. I find the majority’s decision to be archaic and without legal basis. We can and must provide specific guidance to the trial court that "articulate[s] a consistent approach to these cases that copes with perceived problems in our litigation system while maintaining acceptable standards of due process.” (McGovern, Managing Complex Litigation, 53 U. Chi. L. Rev. 440, 441 (1986).) The majority’s disposition in the present cause falls far short of this goal. For these reasons, I respectfully dissent.