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INSURANCE COMPANY v. CITY OF WAUKEGAN - Simonsays - 03-22-2012
What does this mean? Can some one sum it up and explain?
The summation is at the end after the giant list of names
AMERICAN SAFETY CASUALTY INSURANCE COMPANY v. CITY OF WAUKEGAN
AMERICAN SAFETY CASUALTY INSURANCE COMPANY, Plaintiff,
v.
CITY OF WAUKEGAN, Defendant.
CITY OF WAUKEGAN, Counter-Plaintiff,
v.
AMERICAN SAFETY CASUALTY INSURANCE COMPANY, INTERSTATE INDEMNITY COMPANY, CERTAIN UNDERWRITERS AT LLOYDS OF LONDON, NORTHFIELD INSURANCE COMPANIES, WESTPORT INSURANCE CORPORATION, EVANSTON INSURANCE COMPANY, S. ALEJANDRO DOMINGUEZ, AND PAUL HENDLEY, Counter-Defendants.
Case No. 07 C 1990.
United States District Court, N.D. Illinois, Eastern Division.
March 19, 2012.
American Safety Casualty Insurance Company, Plaintiff, represented by Daile V. McCann, Asperger Associates LLC, Jeffrey J. Asperger, Asperger Associates, LLC & John R Bowley, Asperger Associates LLC.
Scottsdale Insurance Company, Plaintiff, represented by Kurt M. Zitzer, Meagher & Geer, P.L.L.P., Louis Anthony Varchetto, Mulherin, Rehfeldt & Varchetto, P.C., Ray Hunter Rittenhouse, Mulherin, Rehfeldt & Varchetto, P.C. & Shana Anne O'Grady, Mulherin, Rehfeldt & Varchetto, P.C..
City of Waukegan, Illinois, Defendant, represented by Paulette A. Petretti, Scariano, Himes & Petrarca Chtd, Alicia Nichole Garcia, Scariano, Himes and Petrarca, Chtd., Anthony G. Scariano, Scariano, Himes and Petrarca, Daniel Playfair Field, Scariano, Himes & Petrarca, Darcee Corinne Williams, Scariano, Himes and Petrarca & Kimberly Payne, Scariano, Himes & Petrarca Chtd.
Westport Insurance Corporation, Defendant, represented by Bruce A. Radke, Vedder Price P.C. & Kevin J. Kuhn, Vedder Price P.C..
Westport Insurance Corporation, Third Party Defendant, represented by Bruce A. Radke, Vedder Price P.C., Kevin J. Kuhn, Vedder Price P.C. & Laurel A. Dearborn, Vedder Price P.C..
Scottsdale Insurance Company, Counter Defendant, represented by Ray Hunter Rittenhouse, Mulherin, Rehfeldt & Varchetto, P.C..
Interstate Indemnity Company, Counter Defendant, represented by Mark Robert Filip, Kirkland & Ellis LLP, Carter Bryan Stewart, Kirkland & Ellis LLP, Dana A Rice, Hinshaw & Culbertson LLP, Gabor Balassa, Kirkland & Ellis LLP, Jennifer Kristen Gust, Hinshaw & Culbertson LLP, Joshua G. Vincent, Hinshaw & Culbertson, Kent J. Cummings, Hinshaw & Culbertson & Robert John Gibbons, Hinshaw & Culbertson LLP.
LLoyds of London, Counter Defendant, represented by Robert Paul Arnold, Walker Wilcox Matousek LLP.
Northfield Insurance Company, Counter Defendant, represented by Michael John Duffy, Tressler LLP, Ashley L. Conaghan, Tressler LLP & Jeffrey Mark Alperin, Tressler LLP.
S Alejandro Dominguez, Counter Defendant, represented by Jonathan I. Loevy, Loevy & Loevy, Arthur R. Loevy, Loevy & Loevy, Bradley Stephen Block, Law Offices of Bradley Block & Michael I Kanovitz, Loevy & Loevy.
Westport Insurance Corporation, Counter Defendant, represented by Bruce A. Radke, Vedder Price P.C..
Service List,, represented by Kurt M. Zitzer, Meagher & Geer, P.L.L.P., Louis Anthony Varchetto, Mulherin, Rehfeldt & Varchetto, P.C., Ray Hunter Rittenhouse, Mulherin, Rehfeldt & Varchetto, P.C. & Shana Anne O'Grady, Mulherin, Rehfeldt & Varchetto, P.C..
City of Waukegan, Illinois, Counter Claimant, represented by Paulette A. Petretti, Scariano, Himes & Petrarca Chtd, Alicia Nichole Garcia, Scariano, Himes and Petrarca, Chtd., Anthony G. Scariano, Scariano, Himes and Petrarca, Daniel Playfair Field, Scariano, Himes & Petrarca, Darcee Corinne Williams, Scariano, Himes and Petrarca & Kimberly Payne, Scariano, Himes & Petrarca Chtd.
American Safety Casualty Insurance Company, Counter Defendant, represented by Daile V. McCann, Asperger Associates LLC, Jeffrey J. Asperger, Asperger Associates, LLC & John R Bowley, Asperger Associates LLC.
Interstate Indemnity Company, Cross Claimant, represented by Mark Robert Filip, Kirkland & Ellis LLP, Carter Bryan Stewart, Kirkland & Ellis LLP, Gabor Balassa, Kirkland & Ellis LLP & Jennifer Kristen Gust, Hinshaw & Culbertson LLP.
S Alejandro Dominguez, Cross Defendant, represented by Jonathan I. Loevy, Loevy & Loevy, Arthur R. Loevy, Loevy & Loevy, Bradley Stephen Block, Law Offices of Bradley Block & Michael I Kanovitz, Loevy & Loevy.
Interstate Indemnity Company, Counter Claimant, represented by Mark Robert Filip, Kirkland & Ellis LLP, Carter Bryan Stewart, Kirkland & Ellis LLP, Gabor Balassa, Kirkland & Ellis LLP & Jennifer Kristen Gust, Hinshaw & Culbertson LLP.
City of Waukegan, Illinois, Counter Defendant, represented by Paulette A. Petretti, Scariano, Himes & Petrarca Chtd, Anthony G. Scariano, Scariano, Himes and Petrarca, Daniel Playfair Field, Scariano, Himes & Petrarca & Darcee Corinne Williams, Scariano, Himes and Petrarca.
Westport Insurance Corporation, Counter Claimant, represented by Bruce A. Radke, Vedder Price P.C..
City of Waukegan, Illinois, Counter Defendant, represented by Paulette A. Petretti, Scariano, Himes & Petrarca Chtd, Anthony G. Scariano, Scariano, Himes and Petrarca, Daniel Playfair Field, Scariano, Himes & Petrarca & Darcee Corinne Williams, Scariano, Himes and Petrarca.
Westport Insurance Corporation, Counter Claimant, represented by Bruce A. Radke, Vedder Price P.C. & Kevin J. Kuhn, Vedder Price P.C..
City of Waukegan, Illinois, Counter Defendant, represented by Paulette A. Petretti, Scariano, Himes & Petrarca Chtd, Alicia Nichole Garcia, Scariano, Himes and Petrarca, Chtd., Anthony G. Scariano, Scariano, Himes and Petrarca, Daniel Playfair Field, Scariano, Himes & Petrarca & Darcee Corinne Williams, Scariano, Himes and Petrarca.
Westport Insurance Corporation, Cross Claimant, represented by Bruce A. Radke, Vedder Price P.C. & Kevin J. Kuhn, Vedder Price P.C..
S Alejandro Dominguez, Cross Defendant, represented by Jonathan I. Loevy, Loevy & Loevy, Arthur R. Loevy, Loevy & Loevy, Bradley Stephen Block, Law Offices of Bradley Block & Michael I Kanovitz, Loevy & Loevy.
MEMORANDUM OPINION AND ORDER
VIRGINIA M. KENDALL, District Judge.
After Alejandro Dominguez won a judgment of over $9 million against the City of Waukegan ("the City" or "Waukegan") for violations of his civil rights, Waukegan sued its various insurers, asserting that they should have defended and/or indemnified the City in Dominguez's case. The Court will not review the tortured procedural history of this case in great detail; for present purposes it is sufficient to note that the Court previously found that two of the insurers, American Safety Casualty Insurance Company ("American Safety") and Interstate Indemnity Company ("Interstate") needed to indemnify the City in connection with the $11 million the City paid to satisfy its judgment. After the Court entered a very detailed final judgment order, the Court referred the various parties' bills of costs to the magistrate judge. The magistrate issued a careful and lengthy opinion denying the City's request for the over $3 million in interest and fees it incurred to issue a municipal bond to cover the Dominguez judgment, among other rulings.
The City has objected to only that ruling, asserting that it is entitled to the bond costs based on the policies issued by American Safety and Interstate and various procedural rules and statutes. None of the City's objections have merit, and the City's objections fundamentally misunderstand that its bond financing costs are not costs incurred in connection with prosecuting this suit to be recovered during the bill of costs process. Rather, the bond costsâ if the City is in fact entitled to themâare properly considered to be damages the City incurredas the result of the insurers' decision not to indemnify the City. Because the bond costs are damages, the City should have sought them at summary judgment with proper evidence. The City's objections are overruled and the Court adopts the holdings of the magistrate's report and recommendation as noted below.
DISCUSSION
All told, the City paid $11,397,195.39 to satisfy the Dominguez verdict; it pulled together those funds by issuing a municipal bond. The City paid $3,130,168.42 in interest and other costs in order to issue the municipal bond to satisfy the judgment, and now wants to recover that amount as "costs." In its objections, Waukegan asserts that it has not waived its right to seek bond financing costs, and that the bond costs should be considered awarded to the City per: (1) American Safety's and Interstate's policies; (2) § 155 of the Illinois Insurance Code; (3) Rule 54(d) and Federal Rule of Appellate Procedure 39(e); (4) Local Rule 54.1©; or (5) the Illinois Interest Act (815 ILCS 205/2). The Court addresses each of the City's contentions in turn.
A. City's Bond Financing Costs Are Damages, not Costs
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