Cascade Builders Corp. v. Rugar

2021 IL App (1st) 192410 · Appellate Court of Illinois, First District, Fifth Division · February 5, 2021 · No. 1-19-2410

Summary

The Illinois Appellate Court, First District, Fifth Division, affirmed the dismissal of a proceeding concerning enforcement of a New York foreign subpoena against an Illinois insurer under the Uniform Interstate Depositions and Discovery Act. The court held that Illinois law, including Illinois choice-of-law principles, governed the motion to quash and that the appellant failed to establish that New York law would produce a different result regarding privilege. The court also affirmed because the appellant did not provide the sealed documents reviewed in camera, requiring presumptions in favor of the circuit court's ruling.

Court
Appellate Court of Illinois, First District, Fifth Division
Writing for the Court
Justice Rochford; Presiding Justice Delort; Justice Hoffman
Jurisdiction
Illinois
Decision date
February 5, 2021
Docket number
1-19-2410
Procedural posture
Utica First Insurance Company appealed from an order of the Circuit Court of Cook County dismissing a proceeding to enforce a New York foreign subpoena against Interstate Fire & Casualty Company under the Uniform Interstate Depositions and Discovery Act.
Standard of review
De novo review applies to questions of statutory construction and choice-of-law determinations. The appellate court also presumes that the circuit court's order conformed to the law and had a sufficient factual basis when the appellant provides an inadequate record.
Precedential value
published opinion
Parties
Utica First Insurance Company v. Interstate Fire & Casualty Company
Disposition
affirmed

Topics

discovery disputestatutory interpretationappellate procedurecivil procedureinsurance

Practice areas

civil procedureappellate procedureinsurance lawconstruction lawcommercial litigation

Questions Presented

  1. Whether the Uniform Interstate Depositions and Discovery Act required the Illinois circuit court to apply Illinois law, including Illinois choice-of-law principles, to Interstate's motion to quash the foreign subpoena.
  2. Whether Utica established a conflict between Illinois and New York privilege law that would change the outcome concerning production of the remaining 92 pages of documents.
  3. Whether the appellate court could review the privilege determination when the documents reviewed in camera were not included in the appellate record.

Holdings

  1. An application to quash a foreign subpoena issued under the Act must comply with Illinois rules and statutes, including Illinois procedural, evidentiary, and conflict-of-laws principles; therefore, Illinois law governs the Illinois court's resolution of the motion to quash.
  2. Utica failed to meet its burden to demonstrate a conflict between Illinois and New York law that would make a difference in the outcome, so no further choice-of-law analysis was required.
  3. When the appellant does not provide the documents reviewed in camera for appellate review, the appellate court must resolve doubts against the appellant and affirm the circuit court's order.

Key quotations

The plain language of the Act thus indicates that applications to quash a foreign subpoena issued pursuant thereto—such as the motion to quash filed by Interstate at issue in this matter—are to “comply with the rules or statutes of this State.” (¶ 13)
From the language of the Act itself and the uniform committee comments with respect thereto, it is thus evident that—at a minimum—the choice-of-law principles of this state should apply to the question of whether Illinois or New York substantive law should apply to Interstate’s motion to quash Utica’s subpoena. (¶ 15)

Factual background

Cascade Builders Corporation hired Rugar to perform work on a New York residence owned by Craig and Constance Weatherup. After the Weatherups claimed that Rugar's work damaged the residence, Interstate paid them $590,749.04 in settlement and received a release and assignment of potential claims against Rugar, Benjamin Moore, and Utica. Cascade then filed a New York action asserting claims against those parties, and Utica sought Interstate's insurance policies and claim files through a New York subpoena issued for enforcement in Illinois.

Procedural history

Cascade filed an underlying lawsuit in New York against Rugar, Utica, and Benjamin Moore. In connection with that litigation, Utica submitted a New York subpoena to an Illinois circuit court for issuance and service on Interstate. Interstate moved to quash, asserting overbreadth, irrelevance, and privilege. After an in camera review and production of most of the disputed documents, the circuit court applied Illinois law to the remaining privilege disputes and dismissed the matter. The appellate court affirmed.

Court Document

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