People Ex Rel. Thompson v. Anderson

The plaintiffs, Charles Wernowsky and Barbara Wernowsky, brought this action to recover the proceeds Page 51 of a homeowners insurance policy issued by the defendant, Economy Fire & Casualty Company, Inc., and for penalties for the defendants refusal to settle their claim. The claim arose from a fire at the plaintiffs home. Following a bench trial in the circuit court of Adams County, the court held that the defendant was not liable for the loss. The court found that Charles Wernowsky had set the fire, either by himself or with the aid of another, and that Barbara Wernowsky had taken part in the ensuing attempt to defraud the defendant. Accordingly, the trial judge entered judgment for the defendant on its affirmative defense that the plaintiffs had submitted a fraudulent proof of loss. The appellate court reversed that judgment, concluding that a new trial was necessary because evidence of the plaintiffs other recoveries for fire losses had been admitted without a sufficient foundation. (122 Ill. App.3d 891.) We allowed the defendants petition for leave to appeal (94 Ill.2d R. 315(a)) and now affirm the decision of the appellate court.