Court Opinion

ID: 9730446
Source: CourtListenerOpinion
Date Created: 2023-08-26 15:12:22.791545+00
Date Added: 2024-06-11T18:26:06.476758
License: Public Domain

JUSTICE BOWMAN, dissenting: The majority holds that 3-J failed to state a cause of action in that it did not adequately allege a breach of fiduciary duty by IBS. The linchpin of the majority opinion is that there are no factual allegations that, prior to August 29, 1986, 3-J requested IBS to “quote and/or procure alternative coverage for American.” Contrary to the opinion of my colleagues, I believe the third-party complaint does set forth such allegations. Accordingly, I dissent. 3-J’s third-party complaint, in summary, alleges the following: that prior to July 17, 1984, 3-J, on more than one occasion, engaged IBS as an insurance broker in obtaining price quotations from excess liability insurance companies for 3-J’s customers; that 3-J does not normally solicit such quotations, and IBS holds itself out as a broker who can procure such coverage; if a policy issued to 3-J’s customer based on IBS' service to 3-J, IBS and 3-J would share the commission paid by the issuing company; that IBS understood that it would use its best efforts to obtain quotes on the cost of requested coverage and that it would promptly notify 3-J if it could not obtain the customer’s required coverage; that IBS would process transmittals from 3-J or the insured to the insurer and would obtain timely replacement coverage for 3-J’s customers; that prior to July 17, 1985, IBS agreed to, and did at 3-J’s request, procure excess liability coverage through GASLIC for 3-J’s customer, E & E; that pursuant to the requirements of the GASLIC policy, 3-J requested IBS to inform GASLIC that E & E was bidding a demolition project for the Continental Bank; IBS requested from 3-J additional information on the Continental project bid and subsequently informed 3-J that GASLIC might not insure the Continental project or might insure only for an increased premium charge; 3-J asked IBS if the insurance coverage for the Continental project could be otherwise obtained for E & E; IBS stated to 3-J in response that IBS did not know where such coverage could be obtained; that on information and belief, IBS did not, as an insurance broker for 3-J, attempt to obtain excess liability coverage for the Continental project from any insurer other than GASLIC; and that IBS breached its oral contractual obligation to procure on a timely basis the insurance coverage requested by E & E and, as 3-J’s insurance broker, failed to exercise reasonable care, ordinary diligence and reasonable promptness in procuring such coverage. American’s complaint against 3-J and the GASLIC insurance policy were attached as exhibits to the 3-J third-party complaint and incorporated thereby by reference. American’s complaint states that E & E requested to obtain, within 15 days, $15 million excess liability insurance coverage as a bid requirement for the Continental project. The majority opinion admits that sufficient allegations were pleaded to raise a factual question as to whether the agency between 3-J and IBS began anew with respect to the Continental project. Specifically, the opinion notes the allegations which indicate that 3-J contacted IBS for the purpose of securing coverage under endorsement No. 8 of the GASLIC policy. The majority then concludes that there are no factual allegations that prior to August 29, 1986, 3-J requested that IBS “quote and/or procure alternate coverage for American.” To reach this result, the general business relationship history between 3-J and IBS and the specific history relating to the acquisition of American’s policy with GASLIC, as established by the facts set forth in 3-J’s third-party complaint, including the exhibits incorporated therein by reference, must be ignored. Specifically, the majority ignores the fact that 3-J asked IBS if excess liability coverage for the project could otherwise be obtained for American. Accepting this fact as true and drawing all reasonable inferences in favor of 3-J (Board of Education v. A, C & S, Inc. (1989), 131 Ill. 2d 428, 438), it follows that the scope of the agency relationship between 3-J and IBS reasonably includes the obligation of IBS to search the excess liability insurance market for coverage of the Continental project. Consequently, it cannot be said that no set of facts can be proved which will entitle 3-J to recover. (Board of Education, 131 Ill. 2d at 438.) An agent must see that he meets the responsibility of his position and does not take any advantage, either for his own personal gain or to injury of the person he represents. Head v. Wood (1959), 20 Ill. App. 2d 97,106. I submit that the allegations regarding the business history between 3-J and IBS, when coupled with the alleged specific inquiry as to whether insurance coverage for the Continental project was otherwise available, were sufficient to set forth the element of an agency relationship and a fiduciary duty on the part of IBS to timely search the market for such coverage. For the reasons stated, I would reverse the trial court’s judgment dismissing 3-J’s third-party complaint.