APPELLATE COURT OF ILLINOIS, SECOND DISTRICT
Corporation, Third-Party Defendant and
508 N.E.2d 1128, 155 Ill. App. 3d 919, 108 Ill. Dec. 551 1987.IL.664
Appeal from the Circuit Court of Du Page County; the Hon. Anthony M. Peccarelli, Judge, presiding.
JUSTICE NASH delivered the opinion of the court. LINDBERG, P.J., and INGLIS, J., concur.
DECISION OF THE COURT DELIVERED BY THE HONORABLE JUDGE NASH
Third-party defendant, Utility Dynamics Corporation (Utility), brings this interlocutory appeal pursuant to Supreme Court Rule 308 (87 Ill. 2d R. 308) from a summary judgment in favor of third-party plaintiff, the city of Naperville, in which the trial court determined that Utility's contractual obligation to obtain insurance protecting Naperville from liability was not void as against public policy.
In 1978, the parties entered into a contract in which Utility agreed to construct an extension of the city's electrical system and to procure insurance coverage to protect Naperville from liability for injuries and other loss and expenses (including attorney fees) by reason of such liability. Utility did not provide the insurance, and in 1979 plaintiff, Henry St. John, was injured at the construction site. Plaintiff sought recovery for his injuries against Naperville and it brought this third-party action against Utility for contribution and breach of contract to insure. Naperville sought recovery for legal costs to defend the underlying action and for a sum equal to any judgment entered against it in that case.
Utility sought summary judgment on grounds that the contract terms requiring it to provide insurance were void under section 1 of "An Act in relation to indemnity in certain contracts" (Indemnification Contracts or Agreements Act or Act) (Ill. Rev. Stat. 1985, ch. 29, par. 61), and Naperville moved for summary judgment on grounds that Utility had breached its contractual obligation to acquire insurance. The trial court denied Utility's motion and granted Naperville's motion, and this court allowed interlocutory appeal.
The relevant portions of the agreement between the parties are as follows:
"2. The Contractor shall provide all insurance necessary to protect and save harmless the property, the Owner and his representatives and the Contractor within the statutes of the State, and including, but not limited to those herein enumerated:
c. Insurance shall include the following requirements, ...