Appeal from the Circuit Court of the 13th Judicial Circuit, Grundy County, Illinois, No. 03-CH-89. Honorable Lance R. Peterson, Judge, Presiding.
The opinion of the court was delivered by: Justice Slater
After a fire occurred in a storage unit rented by defendant John Marx, plaintiff Standard Mutual Insurance Company filed a declaratory judgment action to determine its obligations to Marx under a homeowner's insurance policy. Also named as defendants were M&S Rentals, Inc. (M&S), the owner of the storage facility, and its insurer, Springfield Fire and Casualty Insurance Company (Springfield), which sought to recover from Marx for damage caused to the storage facility. The trial court granted summary judgment in favor of plaintiff, finding that the motorcycle which caused the fire was excluded from coverage under the policy. On appeal, M&S and Springfield (hereinafter "defendants"*fn1) contend that the trial court erred in finding that Marx's motorcycle was not in "dead storage." We affirm.
Marx rented two bays in a storage facility owned by M&S in Morris, Illinois. Among the items stored in the bays were four motorcycles which Marx considered to be collector's items: a 1976 Honda Goldwing; a 1980 Honda Goldwing; and two 1979 Yamaha 750 cc motorcycles. Only the 1980 Honda was licensed and insured. Marx would occasionally operate the three unlicensed motorcycles in the parking lot of the storage facility. On September 1, 2003, Marx went to the storage facility and tried to start one of the 1979 Yamahas. He had last ridden it a month earlier. Marx used the foot pedal to prime the cycle and pushed the electric start button. There was an explosion and Marx was thrown from the motorcycle. After unsuccessfully trying to put out the ensuing fire with a towel, Marx called 911. The fire damaged both Marx's belongings and the storage facility. M&S, through its insurer, Springfield, subsequently made a claim against Marx for damages caused by the fire in excess of $177,000. Marx sought a defense and coverage under his homeowner's policy issued by plaintiff, which responded with a reservation of rights and a declaratory judgment action. The trial court granted summary judgment in favor of plaintiff, finding that the motorcycle was excluded from coverage and that an exception to the exclusion for vehicles in "dead storage" did not apply. This appeal followed.
In construing the language of an insurance policy, the primary objective is to ascertain and give effect to the intent of the parties; the policy must be construed as a whole, taking into account the type of insurance, the nature of the risks involved and the overall purpose of the contract. Travelers Insurance Co. v. Eljer Manufacturing, Inc., 197 Ill. 2d 278, 757 N.E.2d 481 (2001). Construction of the provisions of an insurance policy is a question of law subject to de novo review. Eljer, 197 Ill. 2d 278, 757 N.E.2d 481.
The homeowner's policy issued to Marx by plaintiff excluded liability and medical payments coverage for injury or property damage arising out of:
"The ownership, maintenance, use, loading or unloading of motor vehicles or all other motorized land conveyances, including trailers, owned or operated by or rented or loaned to an 'insured'[.]"
The policy further provided, however, that the exclusion did not apply to:
"A vehicle or conveyance not subject to motor vehicle registration which is:
(c) In dead storage on an 'insured location'[.]"
Defendants maintain that the trial court erroneously found that the motorcycle was not in dead storage. As there are no reported cases in Illinois construing that phrase, defendants rely on several cases from other jurisdictions for the proposition that a vehicle can be in dead storage even when it is being started or is undergoing maintenance. See Allstate Insurance Co. v. Burns, 837 N.E.2d 645 (Ind. Ct. App. 2005) (unlicensed car which had been inoperable for over a month was in dead storage notwithstanding that fire occurred while insured was attempting to start car); Allstate Insurance Co. v. Geiwitz, 86 Md. App. 704, 587 A.2d 1185 (1991) (car kept by insured as collectible rather than for transportation was in dead storage despite fact that car was occasionally driven on property where it was stored and accident occurred while repairing gas gauge); Nationwide Mutual Fire Insurance Co. v. Allen, 68 N.C. App. 184, 314 S.E. 2d 552 (1984) (motorcycle which had been inoperable for six months prior to fire caused when insured was "inspecting" cycle in his living room was in dead storage); Sharpe v. State Farm Fire & Casualty Co., 558 F. Supp. 10 (E.D. Tenn. 1982) (old, unlicensed vehicles that were not driven on highway but were occasionally driven on insured's property were in dead storage).
Plaintiff, on the other hand, relies on cases holding that a vehicle which is undergoing maintenance or is being started is not in dead storage. See, e.g., Nationwide Mutual Insurance Co. v. McMahon, 365 F. Supp. 2d 671 (E.D. N.C. 2005) (car undergoing maintenance by priming carburetor in attempt to start it was not in dead storage); David v. Tanksley, 218 F. 3d 928 (8th Cir. 2000) (same); North Star Mutual Insurance Co. v. Carlson, 442 N.W. 2d 848 (Minn. Ct. App. 1989) (same); Holliman v. MFA Mutual Insurance Co., 289 Ark. 276, 711 S.W. 2d 159 (1986) (same); Broadway v. Great American Insurance Co., 465 So. 2d 1124 (Ala. 1985) (same); see generally, Annotation, Liability Insurance: When is Vehicle in "Dead Storage", 48 A.L.R. 4th 591 (1986). Our review of these ...