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Lake Shore Racquet Club v. Fireman's Fund Ins.





APPEAL from the Circuit Court of Cook County; the Hon. JOSEPH M. WOSIK, Judge, presiding.


This is an appeal from an order of the circuit court of Cook County denying Lake Shore Racquet Club, Inc., and Michigan Avenue National Bank's motion to distribute monies placed into two funds pursuant to court orders of September 21, 1979, and January 24, 1980. At issue here is whether the trial court erroneously refused to distribute funds previously ordered to be deposited with the court.

For the reasons hereinafter set forth, this appeal is dismissed.

The record discloses the following facts concerning the matters at issue in the present appeal. Lake Shore Racquet Club, Inc., leases and operates the Lake Shore Racquet Club, which suffered extensive damage when its roof collapsed incident to the heavy snow accumulation of the blizzard of January 1979. Legal title to the club is in Michigan Avenue National Bank as trustee under a land trust (hereinafter both parties will be collectively referred to as Lake Shore). After the collapse, Lake Shore filed a series of claims with Fireman's Fund Insurance Companies and National Surety Corporation (hereinafter collectively referred to as Fireman's). Lake Shore sought payment under the terms of the policy for the collapse damage as well as damage incurred as a result of vandalism, theft, and fire. On September 12, 1979, the insurance company tendered a check in the amount of $2,010,323, which represented a settlement of $2,335,323 minus prior advances. The check was made payable to Lake Shore and Lash, Warner and Associates (hereinafter Lash). Lash is a public insurance adjuster which Lake Shore engaged in the adjustment of its claim with Fireman's. The check was made payable to both parties because Lash asserted a lien in the insurance proceeds for the amount it claims due on its contract with Lake Shore. The contingency agreement between Lake Shore and Lash whereby Lash was to receive 6 percent of the insurance proceeds has not been made a part of the record, although we note that it has attached as part of the appendix to the appellant's brief. After Lake Shore's demand for a check made payable solely to it was rejected by Fireman's, Lake Shore initiated an injunction action.

The injunction complaint sought injunctive relief in the nature of an order directing Fireman's to pay the insurance proceeds solely to Lake Shore, alleged a breach of contract against Fireman's, and alleged tortious interference with the Lake Shore-Fireman's insurance contract by Lash. Pursuant to Lake Shore's motion for a temporary restraining order and after a hearing on that motion, the court entered an order on September 21, 1979, directing Fireman's to pay $1,870,203.62 of the insurance proceeds to Lake Shore, $85,000 of the insurance proceeds to Lash, and the remainder of the proceeds, $55,117.33 to the clerk of the court to be deposited into Mid-America National Bank subject to further order of court.

A settlement for a second set of claims pertaining to the vandalism, theft, and fire damage was reached by the parties in the amount of $105,333.16. Incident to this settlement and because Lash was again asserting a lien in the insurance proceeds, Fireman's filed an interpleader action in the circuit court of Cook County naming Lash and Lake Shore as defendants. Pursuant to this action, Fireman's moved for leave to deposit the insurance proceeds with the court. On January 24, 1980, an agreed order was entered whereby the court ordered Fireman's to pay 94 percent of the proceeds or $99,031.97 to Lake Shore. The balance, representing the 6 percent lien, alleged by Lash, was to be paid to the clerk of the court and deposited into Amalgamated Trust and Savings Bank. The order also recited that:

"The issue as to whether defendant Lash, Warner Associates has any interest in the funds deposited in the account identified above, pursuant to this Order, so as to require said funds to be segregated until resolution of the alleged contract dispute between Lash, Warner Associates and Lake Shore, shall be presented to and heard by this Court in due course, upon Notice."

In accordance with the January 24, 1980, order, Lake Shore apparently filed a motion to distribute the deposited funds. A copy of the motion, while not contained in the record on appeal, is attached as part of Lake Shore's appendix. Prior to the hearing on this motion, the injunctive action and the interpleader action were consolidated. After a change of venue motion was denied and after Fireman's was dismissed from the interpleader action and from the injunction action, the hearing on the motion to distribute the deposited funds was held. At the hearing, Lake Shore also moved instanter for the distribution of the funds deposited with the court per the September 21, 1979, order. Both motions were denied in the trial court's June 19, 1980, order giving the parties leave to file within 45 days their claims to the aforesaid funds and appropriate pleadings. It is from the denial of the distribution motion that Lake Shore brings the present interlocutory appeal.

• 1 Prior to oral argument of this appeal, Lash filed a motion to dismiss this appeal for lack of this court's jurisdiction. This motion was taken with the appeal. Because we now find that the order appealed from is not an appealable interlocutory order of right under Supreme Court Rule 307(a) (Ill. Rev. Stat. 1979, ch. 110A, par. 307(a)), we grant Lash's motion and dismiss this appeal. Rule 307(a) provides for interlocutory appeals as of right from the following types of interlocutory orders:

"(1) granting, modifying, refusing, dissolving, or refusing to dissolve or modify an injunction;

(2) appointing or refusing to appoint a receiver or sequestrator;

(3) giving or refusing to give other or further powers or property to a receiver or sequestrator already appointed;

(4) placing or refusing to place a mortgagee in possession of mortgaged premises;

(5) appointing or refusing to appoint a receiver, liquidator, rehabilitator, or other similar officer for a bank, savings and loan association, currency exchange, insurance company, or other financial institution, or granting or refusing to grant ...

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