The Supreme Court has Spoken: Are You Ready for Ready? Larry Smith SmithAmundsen LLC April 7, 2011 www.salawus.com The Supreme Court has Spoken: Are You Ready for Ready? Terry E. Ready, Special Administrator of the Estate of Michael P. Ready, deceased v. BMW Constructors, Inc.; United/Goedecke Services, Inc. v. Midwest Generation, L.L.C. The Supreme Court has Spoken: Are You Ready for Ready? Facts Date of Loss: December 23, 1999 Plaintiff’s decedent was killed when a beam fell approximately eight stories. BMW was the general contractor and United was the scaffolding subcontractor of BMW. Midwest Generation was the Plaintiff’s employer. Midwest’s (the employer) work rules were violated. If BMW (the general contractor) had used a crane on the pipe refitting project, there arguably would have been no accident. Affirmative defense: United had filed an affirmative defense alleging that the conduct of BMW and/or Midwest was the sole proximate cause of the accident. The Supreme Court has Spoken: Are You Ready for Ready? (735 ILCS 5/2-1117) (from Ch. 110, par. 2-1117) Effective 3/9/95 Except as provided in Section 2-1118, in actions on account of bodily injury or death or physical damage to property, based on negligence, or product liability based on strict tort liability, all defendants found liable are jointly and severally liable for plaintiffs past and future medical and medically related expenses. Any defendant whose fault, as determined by the trier of fact, is less than 25% of the total fault attributable to the plaintiff, the defendants sued by the plaintiff, and any third party defendant who could have been sued by the plaintiff, shall be severally liable for all other damages. Any defendant whose fault, as determined by the trier of fact, is 25% or greater of the total fault attributable to the plaintiff, the defendants sued by the plaintiff, and any third party defendants who could have been sued by the plaintiff, shall be jointly and severally liable for all other damages. The Supreme Court has Spoken: Are You Ready for Ready? (735 ILCS 5/2-1117) (from Ch. 110, par. 2-1117) Effective 6/4/03 Sec. 2-1117. Joint liability. Except as provided in Section 2-1118, in actions on account of bodily injury or death or physical damage to property, based on negligence, or product liability based on strict tort liability, all defendants found liable are jointly and severally liable for plaintiff's past and future medical and medically related expenses. Any defendant whose fault, as determined by the trier of fact, is less than 25% of the total fault attributable to the plaintiff, the defendants sued by the plaintiff, and any third party defendant except the plaintiff's employer, shall be severally liable for all other damages. Any defendant whose fault, as determined by the trier of fact, is 25% or greater of the total fault attributable to the plaintiff, the defendants sued by the plaintiff, and any third party defendants except the plaintiff's employer, shall be jointly and severally liable for all other damages. The Supreme Court has Spoken: Are You Ready for Ready? Settlement: Plaintiff settles the case against BMW and Midwest and goes to trial against United. Trial Plaintiff obtains a $14.23 million verdict against United. United was precluded from arguing allocation of fault under 2-1117 United was prohibited from arguing the “sole proximate cause” defense The Supreme Court has Spoken: Are You Ready for Ready? Ready v. United/Goedecke Servs., 367 Ill. App. 3d 272, 854 N.E.2d 758, 2006 Ill. App. LEXIS 744, 305 Ill. Dec. 166 (Ill. App. Ct. 1st Dist. 2006) The Illinois Appellate Court ruled in favor of United on both the allocation of fault and sole proximate cause issues. The Supreme Court has Spoken: Are You Ready for Ready? Ready v. United/Goedecke Servs., 2008 Ill. LEXIS 1439 (Ill. Nov. 25, 2008) The Supreme Court reversed the Appellate Court: the Supreme Court determined that a non-settling defendant was not entitled to an allocation of fault determination for any former party which entered into a good faith settlement with plaintiff. The Supreme Court has Spoken: Are You Ready for Ready? Ready v. United/Goedecke Servs., 232 Ill. 2d 369, 905 N.E.2d 725, 2008 Ill. LEXIS 1837, 328 Ill. Dec. 836 (2008) On petition for rehearing, the Supreme Court issued a modified opinion remanding the case to the Appellate Court to determine if United was entitled to use the sole proximate cause defense. The Supreme Court has Spoken: Are You Ready for Ready? Ready v. United/Goedecke Servs., 393 Ill. App. 3d 56, 911 N.E.2d 1140, 2009 Ill. App. LEXIS 589, 331 Ill. Dec. 910 (Ill. App. Ct. 1st Dist. 2009) Based upon the Supreme Court’s opinion, the Appellate Court determined that United was entitled to a new trial and could use the sole proximate cause defense. The Supreme Court has Spoken: Are You Ready for Ready? Ready v. United/Goedecke Servs., 238 Ill. 2d 582, 939 N.E.2d 417, 2010 Ill. LEXIS 1538, 345 Ill. Dec. 574 (2010) On appeal, the Supreme Court held that “sole proximate cause” is a valid defense for a remaining defendant. The Court also held that the evidence was insufficient to allow United to win on the issue at trial. Therefore, the original verdict in favor of plaintiff was upheld. The Supreme Court has Spoken: Are You Ready for Ready? Ill. Pattern J.I. 15.01 Proximate Cause-Definition When I use the expression “proximate cause,” I mean a cause that, in the natural or ordinary course of events, produced the plaintiff's injury. [It need not be the only cause, nor the last or nearest cause. It is sufficient if it combines with another cause resulting in the injury.] The Supreme Court has Spoken: Are You Ready for Ready? Potential Complicating Factors Target defendant Bankruptcy of a party Low coverage limits Behind the scenes deals Attorneys are friends The parties have an ongoing business relationship Insurance companies overlap on coverage Tender of defense issues Who tenders to whom? What limits apply and to whom? The Supreme Court has Spoken: Are You Ready for Ready? Don’t be the last “man” standing… ….without plenty of ammunition!