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American Safety Casualty Insurance Company v. City of Waukegan

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS EASTERN DIVISION


July 29, 2011

AMERICAN SAFETY CASUALTY INSURANCE COMPANY, PLAINTIFF,
v.
CITY OF WAUKEGAN,
DEFENDANT. CITY OFWAUKEGAN, 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.

The opinion of the court was delivered by: Judge Virginia M.Kendall

MEMORANDUM OPINION AND ORDER AND FINAL JUDGMENT

I. CITY'S RULE 60(a) MOTION

Plaintiff City of Waukegan ("Waukegan or "the City") has moved to correct an omission in the Court's March 3, 2011 (Doc. 811) and July 6, 2011 (Doc. 884) orders entering final judgment in this case. As the City points out, in its March 3, 2011 Opinion the Court awarded $1,079,296.90 to the City from defendant American Safety Casualty Insurance Company ("American Safety") as breach of contract damages as a result of American Safety's failure to defend the City in the underlying Dominguez litigation. (See Doc. 811 at 48.) Addressing only the amounts in dispute after the March 3, 2011 Opinion, the Court did not address that award in the July 6, 2011 Opinion.

To address the City's motion and make clear the final judgment as against American Safety and Interstate Indemnity Company ("Interstate") in this case, the Court summarizes the damages as follows:

Category Responsible Party Amount Self-Insurance Retention Waukegan $100,000 American Safety policy limits American Safety $1,000,000 Interstate's excess layer Interstate $7,963,000 American Safety's pro rata share of American Safety $138,570.12 interest on judgment Interstate's pro rata share of Interstate $1,103, 434.97 interest on judgment Dominguez's attorney's fees in American Safety $1,067,637.86 underlying suit and appeal Dominguez's costs on appeal American Safety $13,757.95 Interest on Dominguez's American Safety $10,794.49 attorney's fees City's fees and costs for the defense American Safety $1,079, 296.29 of the underlying Dominguez action Consequently, pursuant to Rule 58 and as laid out in the Court's March 3, 2011 and July 6, 2011 Opinions, the Court enters judgment in favor of Waukegan and against American Safety for $3,310,057.32, the sum of the items American Safety is responsible for as shown in the table above. The Court also enters judgment in favor of Waukegan and against Interstate for $9,066,434.97, the sum of the items noted above. Pursuant to Rule 58 and as described in the Court's March 30, 2009 and March 3, 2011 Opinions, the Court enters final judgment against Waukegan and in favor of the other carriers, Certain Underwriters at Lloyds of London, Northfield Insurance Companies, Westport Insurance Corporation (formerly Coregis Insurance Organizations), and Scottsdale Insurance Company.

The City is also entitled to its attorney's fees from American Safety for the current suit with respect to its counterclaims against American Safety as laid out in the March 3, 2011 Opinion, to be determined by Magistrate Judge Finnegan. Judge Finnegan will also determine what costs will be awarded to the City and the prevailing insurance companies per the bills of costs filed by the prevailing parties. These amounts will be entered as separate judgments.

II. NORTHFIELD'S MOTION TO CLARIFY

Defendant Northfield Insurance Company ("Northfield"), one of the prevailing insurance

companies per the March 3, 2011 Opinion, filed a motion to clarify to the parties whether the Court has referred all the bills of costs to Judge Finnegan (Doc. 891). The Court grants Northfield's motion and clarifies that (1) the case remains closed because the Court has entered final judgment; and (2) the Court intended to refer to Judge Finnegan all the parties' bills of costs, as well the City's petition for attorney's fees as allowed by the March 3, 2011 Opinion, so that all of those items may be considered by one judge.

Virginia M. Kendall United States District Court Judge Northern District of Illinois

20110729

© 1992-2011 VersusLaw Inc.



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